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THE UNITED REPUBLIC OF TANZANIA
POVERTY REDUCTION STRATEGY
THE THIRD PROGRESS REPORT 2002/03
DAR ES SALAAM
April 2004
LIST OF ABBREVIATIONS AND ACRONYMS
ADB - African Development Bank
ADF - African Development Fund
ADR - Alternative Dispute Resolution
AGOA - African Growth Opportunity Act
ASDP - Agriculture Sector Development Program
ASDS - Agriculture Sector Development Strategy
ASLM - Agriculture Sector Lead Ministries
ATC - Air Tanzania Corporation
ATIP - Accountability, Transparency and Integrated Project
BOT - Bank of Tanzania
BSE - Basic Statistics on Education
CAP - Country Action Program
CBOs - Community Based Organizations
CEF - Community Education Fund Program
CFAA - Country Financial Accountability Assessment
CFS - Child Friendly School Program
CHF - Community Health Fund
COBET - Complimentary Basic Education in Tanzania
CPI - Consumer Price Index
CSOs - Civil Society Organizations
DAC - Donor Aid Coordination
DAWASA - Dar es Salaam Water and Sewerage Authority
DBSPE - District Based Support to Primary Education
DFID - Department for International Development
DHS - Demographic and Health Survey
DPT - Diptheria Pectusis Tetanus
DRF - Drug Revolving Fund
DSA - Dissemination, Sensitization and Advocacy
EAC - East African Community
EPZ - Export Processing Zones
ESDP - Education Sector Development Program
ETP - Education and Training Policy
EU - European Union
FDI - Foreign Direct Investment
FDTF - Fiscal Decentralization Task Force
GATT - General Agreement on Trade and Tariffs
GDP - Gross Domestic Product
GER - Gross Enrolment Rate
GFS - Government Financial Statistics
GGCU - Good Governance Coordination Unit
GOT - Government of Tanzania
HBS - Household Budget Survey
HIPC - Highly Indebted Poor Countries
HIV/AIDS - Human Immuno-deficiency Virus/Acquired Immune Deficiency Syndrome
HMIS - Health Management Information System
HSR - Health Sector Reforms
ICBAE - Integrated Community Based Adult Education
ICT - Information and Community Technology
IFAD - International Fund for Agricultural Development
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IFEM - Inter-Bank Foreign Exchange Market
IFMS - Integrated Financial Management System
ILFS - Integrated Labor Force Survey
INSET - In-Service Training Program
IRP - Integrated Roads Program
ITN - Insecticide Treated Nets
LGA - Local Government Authorities
LGRP - Local Government Reform Program
MAFS - Ministry of Agriculture and Food Security
MCM - Ministry of Cooperatives and Marketing
MDA - Ministries, Departments and Agencies
MDG - Millennium Development Goals
MDT - Millennium Development Targets
MIS - Management Information System
MOEC - Ministry of Education and Culture
MWLD - Ministry of Water and Livestock Development
NACP - National Aids Control Program
NACSAP - National Anti-Corruption Strategy and Action Plan
NAO - National Audit Office
NDS National Debt Strategy
NER - Net Enrolment Rate
NFE - Non-Formal Education
NGOs - Non-Governmental Organizations
OCAG - Office of the Controller and Auditor General
PASS - Private Agribusiness Sector Support
PCB - Prevention of Corruption Bureau
PEDP - Primary Education Development Program
PER - Public Expenditure Review
PHDR - Poverty and Human Development Report
PMMP - Poverty Monitoring Master Plan
PMS - Poverty Monitoring System
PORALG - President‟s Office, Regional Administration and Local Government
PPA - Participatory Poverty Assessment
PRBS - Poverty Reduction Budget Support
PRS - Poverty Reduction Strategy
PRSC - Poverty Reduction Support Credit
PRSP - Poverty Reduction Strategy Paper
PSLE - Primary School Leaving Examination
PSRP - Parastatal Sector Reform Program
QSP - Quick Start Project
RDS - Rural Development Strategy
REPOA - Research on Poverty Alleviation
SADC - Southern Africa Development Community
SEDP - Secondary Education Development Program
SMEs - Small and Medium Enterprises
STI - Sexually Transmitted Infections
TACAIDS - Tanzania Commission on Aids
TAS - Tanzania Assistance Strategy
TB - Tuberculosis
TCCIA - Tanzania Chamber of Commerce, Industries and Agriculture
TEDP - Teacher Education Development Program
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TIC - Tanzania Investment Center
TNBC - Tanzania National Business Council
TRC - Tanzania Railways Corporation
TSED - Tanzania Socio-Economic Database
URRP - Urgent Roads Rehabilitation Programs
VAT - Value Added Tax
VPO - Vice President‟s Office
VTTP - Village Travel and Transport Program
WABEM - Ward Based Education Management Program
WSDP - Whole School Development Program
WSDS - Water Sector Development Strategy
WSIS - World Summit on Information Society
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Table of Contents
LIST OF ABBREVIATIONS AND ACRONYMS........................................................................................................i
Table of Contents..........................................................................................................................................................iv
List of Tables ................................................................................................................................................................. v
I. BACKGROUND ........................................................................................................................................................ 1
1.1 Introduction ................................................................................................................................................ 1
1.2 PRS Review ................................................................................................................................................ 2
II. THE STATUS OF POVERTY ................................................................................................................................. 4
2.1 Income poverty: Growth, Employment and Roads ..................................................................................... 4
2.2 Non–Income Poverty: Human Capabilities, Survival, Extreme Vulnerability ........................................... 7
2.3 Governance ............................................................................................................................................... 11
2.4 Prospects of Monitoring Poverty Reduction ............................................................................................. 12
III. SOCIO-ECONOMIC REFORMS IN 2002/03 ...................................................................................................... 14
3.1 Macroeconomic Performance ................................................................................................................... 14
3.2 Structural Reforms and Private Sector Development ............................................................................... 15
3.3 Poverty Orientation of the 2003/04 Budget .............................................................................................. 17
3.4 Globalization and Poverty ........................................................................................................................ 18
3.5. Public Debt Developments and Management ........................................................................................... 19
IV. IMPLEMENTATION STATUS OF THE PRIORITY SECTORS ....................................................................... 20
4.1 Primary Education .................................................................................................................................... 20
4.2 Roads ........................................................................................................................................................ 24
4.3 Water ........................................................................................................................................................ 27
4.4 Legal and Judicial System ........................................................................................................................ 30
4.5 Health Sector ............................................................................................................................................ 32
4.6 Agriculture ................................................................................................................................................ 36
V. CROSSCUTTING ISSUES .................................................................................................................................... 42
5.1 HIV/AIDS................................................................................................................................................. 42
5.2. Gender ...................................................................................................................................................... 44
5.3. Governance ............................................................................................................................................... 47
5.4. Local Government Reform Program ........................................................................................................ 49
5.5 Human Capital Development.................................................................................................................... 51
5.6 Environment ............................................................................................................................................. 52
VI. BUDGET FRAMEWORK FOR POVERTY REDUCTION PROGRAMS ......................................................... 55
6.1. Resource envelope: A macroeconomic perspective.................................................................................. 55
6.2 Budget frame consideration for financing of priority sectors ................................................................... 56
6.3 Public Expenditure Management in the Medium Term ............................................................................ 59
VII. POVERTY MONITORING AND EVALUATION ............................................................................................ 60
7.1 Performance .............................................................................................................................................. 60
7.2 Operationalization of pooled fund mechanism for the PMS ..................................................................... 61
7.3 Challenges encountered ............................................................................................................................ 61
Annexes: Policy Matrix for Poverty Reduction Strategy............................................................................................. 62
A.I: Macroeconomic, Good Governance and Private Sector Development ............................................................ 62
A.II: Poverty Monitoring System............................................................................................................................ 63
A.III: Water ............................................................................................................................................................. 64
A. IV: Health........................................................................................................................................................... 65
A.V: Gender ............................................................................................................................................................ 66
A.VI: Education ...................................................................................................................................................... 66
A.VII: Roads ........................................................................................................................................................... 67
A.VIII: Judiciary and Justice .................................................................................................................................. 68
A. IX: Agriculture ................................................................................................................................................... 68
A.X: HIV/AIDS ...................................................................................................................................................... 69
A.XI: Employment .................................................................................................................................................. 70
A.XII: Environment ................................................................................................................................................ 71
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List of Tables
Table.1: Income poverty indicators, baseline and targets .............................................................................................. 4
Table 2: Education Indicators, Base line and Targets .................................................................................................... 7
Table 3: Health Outcome and Nutrition Indicators, Base line and Targets ................................................................... 8
Table 4: Health Service Indicators, Base line and Targets .......................................................................................... 10
Table 5: Tanzania: Selected macroeconomic indicators .............................................................................................. 14
Table 6: Priority Expenditures within Priority Sectors, 2000/01 - 2006/07 (Jul–Jun) (in billions TShs) .................... 15
Table 7: Highlights for the 2003/04 Budget Measures ................................................................................................ 17
Table 8a: Gross and Net Enrolment Ratio (GER and NER) By Sex and Region, 2002 .............................................. 21
Table 8b: Gross and Net Enrolment Ratio (GER and NER) by Sex and Region, 2003 ............................................... 21
Table 9: Education Units Inspected 2002 ................................................................................................................... 22
Table 10: Estimated Financing Requirements for the ESDP 2002/03 – 2005/06 (in million Tshs.) .......................... 23
Table 11: Summary of program costing (Tsh. Million) ............................................................................................... 26
Table 12: Financing of the water sector Program, 2003/2004 - 2005/2006 (billion Tshs) ......................................... 30
Table 13: Legal and Judicial Systems Costing of Interventions 2003/04 .................................................................... 32
Table 14: Financing of Priority Health Interventions, 2003/04 - 2005/06 (July-June) TShs billion ........................... 35
Table 15: Summary of costing of sector programs 2003/04 – 2005/06 (Tshs. „Millions) ........................................... 40
Table 16: Costing of Mid-Term Plan of the LGRP ..................................................................................................... 51
Table 18: Central Government Expenditure, 1998/99-2003/04 (billion TShs)............................................................ 56
Table 19: Budget Framework 2003/04-2006/07 (in million TShs).............................................................................. 58
v
I. BACKGROUND
1.1 Introduction
This is the third PRS Progress Report (July 2002-June 2003) that closes the three-year cycle of the
implementation of the first PRSP, which was formulated in the year 2000. While it marks the end of the
first cycle it also provides a bridge to the review process leading to the formulation of the second cycle –
PRSP II. The PRS review process was launched during the Poverty Policy Week in October 2003, the
consultative process of which is stipulated in the “Guide for the Poverty Reduction Strategy Review.”
There are successes recorded due to the implementation of the first PRSP in macroeconomic performance
and in reforms in various areas including financial sector, public service and local government. Distinct
effort has been made to improve delivery of social services such as education, health and water. However,
more effort is still needed in virtually all areas. Challenges due to unmet development needs emanate
from various angles. There is insufficient translation of macro level achievements to the micro level –
hence the need for closer analytical work on growth-poverty linkages and how growth could better benefit
the poor. Greater attention also has to be paid to quality and equity issues in the delivery of social
services, like education and health; combating the spread of HIV/AIDS and commitment to governance
issues.
The report highlights what Government did during the past year in terms of policy developments, an
assessment of the achievements and challenges, including the monitoring system. Unlike the earlier two
reports that pointed out intervention areas for the following year in terms of next steps, this report only
updates the Policy Matrix and takes the year ahead as the planning year to inform the next PRSP. The
first cycle PRS had process activities, some of which have been finalized, while others will continue and
be better informed by the PRS review. Cases in point are the Rural Development Strategy (RDS),
mainstreaming of gender, environment and governance issues.
Experience during the preparation of the last two progress reports and this one reveals that the reporting
quality of progress on both outcome and impact indicators requires improvement. This includes all PRS
sectors and thematic areas. Further, reporting on progress towards poverty reduction in terms of incidence
and correlates can only be made if new data sets are generated. Government will strengthen the reporting
capacity of sectors and thematic areas during the PRS review and in the next PRS cycle. Among other
things, Government will strengthen the capacity of the PRS Technical Committee and Secretariat and
harmonize and synchronize various reporting instruments e.g. PHDR, PER and sector reviews.
In relation to the Poverty Monitoring System (PMS) the challenge is how to hold the entire “machinery”
together and avoid duplication of activities without further stretching available capacity and existing
1
institutional set up. This occupies center stage as we plan for the PRS review. Capacity constraints may
hinder consolidation of the PRS gains and poverty monitoring. Duplication of activities and failure to
define a point of convergence will add to the transaction costs and put additional strain on the already
stretched capacity. Thus addressing PMS capacity concerns and harmonization of activities will certainly
be critical to the implementation of the next PRS cycle and to the management of the PRS review process.
1.2 PRS Review
Overall, the purpose of the review is to update the current PRS by making it more comprehensive and
pro-poor. Also, the review will broaden and deepen interventions to reduce poverty and raise awareness
on the PRS and MDGs. While it is intended to undertake a comprehensive review it is necessary to be
strategic and prioritize issues the review will focus on, and avoid trying to do everything. Specifically the
review will:
Be set in the context of the country's long-term strategies (e.g. NPES and Vision 2025). The PRS is
seen as a means to achieve these long-term goals set out in these strategies, visions and MDGs.
Use existing and recent data and analyses including the last (three) PRS progress reports, PPA, PER
studies and reports, PHDR, Poverty Week Reports, Labor Force and Child Labor Survey, HBS 2000/01
and Census findings, Agriculture Survey, Policy and Service Satisfaction Survey (PSSS) and other
reports. However, since the findings of these reports will be used in the review process, it is not
necessary for this report to highlight them.
Identify knowledge gaps and commission few critical new studies e.g. growth and trade, growth and
employment (jobs) creation, raising returns to smallholder agriculture, examining macro-meso-micro
linkages and integration of cross-cutting issues - HIV/AIDS, gender and environment.
Scale up ownership and awareness of PRS within and across government; strengthen government
leadership and foster participation of key stakeholder with a clear focus on community participation in
PRS formulation, implementation and monitoring.
Improve harmonization of key processes around the PRS, PMS, PER and the budgeting cycle to ensure
most effective utilization of government resources in line with its poverty reduction efforts.
The PRS review provides an opportunity to explore and discuss what is working and what is not. The
review has to address the current limitations of the PRS and PMS and amplify the complementing
contributions of sectors by examining the inter-sector linkages. Capacity constraints in key institutional
bodies of the PRS and PMS, including Local Government will be examined. A PRS Communication
Strategy to support the PRS/MDGs and the PMS will be prepared.
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As part of the review, a consultative meeting of stakeholders was held in January 2004 in Dar es Salaam
to clarify PRS Review issues and launch the preparation of a country-wide Consultation Process on a
range of poverty and policy concerns for the next cycle PRS. Stakeholders came from first-PRS priority
sector and cross-cutting issues ministries, government departments and civil society. Government and
development partners have contributed financial resources to support the country-wide consultations
which are now underway. Reports from the consultations are beginning to flow in. They will be analysed
so that key messages can be incorporated in the new PRS document. It is expected that work on the first
draft of the PRS will start in April and that there will be further rounds of consultation – in June for the
first draft and September for the second draft. Poverty Policy Week is scheduled for October and
finalization and publication activities on the document will take place between October and December
2004.
Details on the PRS review are available in the guide document which can be accessed through
http://www.tzonline and poverty website – http://www.povertymonitoring.go.tz
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II. THE STATUS OF POVERTY
This chapter presents the status of poverty based on the original PRSP indicators and the revised set of
indicators that were extended and modified in 2002. The chapter builds on 2001/02 Progress Report
Status chapter, adding on new data where available and explaining trends in the selected indicators. It also
assesses whether the targets are likely to be achieved, highlights strategic policy direction and prospects
of monitoring poverty reduction. In-depth analysis of poverty status is contained in the PHDR 2003.
Section 1 addresses income poverty including GDP growth, agriculture and employment. Section 2 looks
at non-income poverty dimensions. Section 3 reviews governance and related gender indicators. Section
4 highlights medium-term prospects for improving monitoring of poverty.
2.1 Income poverty: Growth, Employment and Roads
The PRS underpins sustained economic growth as a precondition for poverty reduction, grounded in
sound macroeconomic management, increased investment and improvements in productivity. Agriculture,
improvements to the road network and other pro-poor sectors are prioritized.
The performance indicators identified in the PRS were revised in 2002. The agriculture indicators were
extended, food price inflation was added, unemployment indicators were included to reflect the extent of
economic opportunities, and the road indicators were modified to reflect available data. Targets for new
indicators will be set during the PRS review; a baseline is available in many cases. The resulting
indicators are presented in Table 1. The poverty targets have been adjusted to reflect the revised poverty
estimates that were produced after the publication of the PRSP.
Table.1: Income poverty indicators, baseline and targets
Indicator Baseline Actual Targets
Estimate Year [Source] 2003* 2003 2010
% of the population below the basic needs poverty line 36 2000-01[1] - 30 17.8
% of the population below the food poverty line 18.7 2000-01[1] - 16 9.3
GDP growth rate (%) 4.9 2000[1] 5.5 6.3
Agricultural growth rate (%) 3.4 2000[1] 3.3 5
Food price inflation in urban areas (%) 6.8 2000[1]
% of working age population not currently employed 5 2000-01[1] -
% of 15-24 years old not currently employed in urban 28 2000-01[1] -
areas
Note: For actual 2003, most of the socio-economic indicators in this section have not been worked out. The
information is obtained from HBS and the latest is the 2000/01 HBS.
Sources: – National Bureau of Statistics
Other indicators that future reports will consider due to their relation to growth and employment include
number of kilometers of roads under periodic / routine maintenance, percentage of roads that are only
seasonally accessible), percentage of working age population not currently employed percentage of 15-24
4
years old not currently employed in urban areas. Indicators for investment and business climate will also
be considered.
There is no information on trends in household income poverty since 2000. The current Household
Budget Survey 2000/01 provides the most current information on trends in income poverty between
1991/92 and 2000/01, showing very limited declines in income poverty levels over the 1990s. Estimates
of household consumption levels are not produced annually.
The rest of this section focuses on macroeconomic and sector indicators that have an impact on income
poverty. Note, however, except for a few macroeconomic variables, data on performance of most social
indicators are not readily available for the current progress report. Subsequent report will carry those for
which analyses from the various surveys will have been completed. In addition, possibilities of having
similar indicators for contributions of the private sector in social sectors where the sector has grown in
importance following liberalization will be considered in later reporting.
Economic Growth
While in the early 1990s GDP annual growth rates were often lower than population growth rate,
economic growth has, since the mid-1990s, risen more steadily and overtaken the population growth rate
(2.9% for 1988-2002). In 2002, GDP growth rate registered 6.2%, surpassing the PRSP target of 6.0%;
sliding back to 5.5% for 2003 (provisional estimates). Overall the performance reflects the positive
impact of the economic and fiscal reforms undertaken since mid-1990s. The sticky issue, however, is how
far this growth can translate into poverty reduction over the coming years. Related to this, is the question
of how the gains from growth can be distributed among households for the benefits to reach the poor.
Government is grappling with these issues through broadening sources of growth, expediting
implementation of agricultural sector and rural development programs, facilitating increased private
investment, promoting micro financing and Small and Medium Enterprises (SMEs), and developing the
infrastructure, especially supporting agriculture.
Agriculture and Food Security: Being the mainstay of the economy, agriculture must grow well above
the population growth. PRS agriculture growth target of 5% was achieved in 2001 and 2002, largely due
to good weather conditions. The growth rate for 2003 is provisionally set at 3.3%. This is due to poor
rains. The forthcoming agricultural survey will provide a baseline for 2003, thus reducing data limitations
on production, access to credit, access to market and extension services.
Employment and Unemployment: The ILFS 2000/01 shows that overall unemployment increased
substantially and that it is higher amongst women than men in urban areas. Also, unemployment is
5
particularly high amongst young people, making them more vulnerable. The Integrated Labor Force and
Child Labor surveys, 2000/01 (launched in April 2003) indicated that 39.6% of children aged from 5 to
17 years old are economically active and 21.3% of them are child laborers working more than 4 hours a
day often in worst forms of child labor. Government is addressing employment creation through policy
actions on private sector development, SMEs, agricultural and rural development, micro financing and
EPZs. Such efforts include measures to enhance productivity through job and business management
skills, access to flexible loans and market support for poor women and their families. There are also
measures to curb child labour under the “Time Bound Programme on Worst Forms of Child Labour”
coordinated by the Ministry of Labour, Youth Development and Sports.
Roads: PRS envisaged a rehabilitation of 4,500 km of rural roads in twelve of the poorest regions by
2003. It also aimed at undertaking routine and periodic maintenance on all rural roads, with a focus on
community involvement. Only 51% of the planned rural roads had routine spot improvement and periodic
maintenance. The condition of most roads is classed “poor”.
Challenges and Strategic Policy direction and monitoring
The overriding concern is to ensure attainment of sustained high economic growth and ensuring such
growth benefits the poor particularly in the rural areas. Constraints facing agriculture require expeditious
actions with regard to financing mechanisms, investment and provision of support services. Regional
diversity and inequality would be addressed through appropriate budgetary allocation mechanisms as well
as provision of enabling environment for domestic and foreign investment. The forthcoming agriculture
survey offers an opportunity to revisit and establish concrete indicators for monitoring agriculture and
rural development. More concrete approach of measuring will be designed to capture both rural and urban
dimensions. As part of the PRS updates, attention will be paid to the income and employment impacts of
agriculture, with increasing returns to agriculture at the center.
For the roads, more effective coordination machinery between the central and local governments in the
maintenance of the road stock will be developed. The coordination machinery will clearly assign
responsibilities.
The capacity of Government and relevant NGOs at national and sub-national levels, both human and
resources will be strengthened to meet the challenges of efficiently implementing the “Time Bound
Program on the Worst Forms of Child Labor.”
6
2.2 Non–Income Poverty: Human Capabilities, Survival, Extreme Vulnerability
Education
The past three years have registered substantial achievement, particularly in primary school enrolment.
Enrolment grew by 50 % from 4.4 million in 2000 to 6.6 million in 2003. Both net and gross enrolments
have increased by about 30%. This increase is attributed to the abolition of UPE levy and other mandatory
contributions. Apparently, 2003 PRS and PEDP targets for GER and NER have been surpassed.
Regarding gender parity, despite encouraging signs of near equality in the entry of 7 year olds, there are
concerns that PRS and MDG target for parity in the overall enrolment of girls and boys by 2005 may be
adversely affected by over-age girls facing more difficulties to start school than their male counterparts.
There are also vast disparities in enrolment rates across regions.
Table 2: Education Indicators, Base line and Targets
Baseline Targets
Estimate Year [Source] 2003 2010
Primary net enrolment ratio (%) 59 2000 [1] 90 100
Primary gross enrolment ratio (%) 78 2000 [1] 100
Ratio of girls/boys in primary 0.98 2000 [1] 1.00
Ratio of girls/boys in secondary 0.85 2000 [1] 0.90
% of cohort completing std 7 70 2000 [1]
Primary dropout rate (%) 6 2000 [1] 3
% students passing PSLE 22 2000 [1] 50
Transition rate std 7 to form 1 (%) 16 2000 [1] 28
Literacy rate of pop aged 15+ 71 2000-01 [2] 100
Literacy rate of pop aged 15-24 82 2000-01 [2]
Note: Targets for 2003 are the revised values given in the Second PRS Progress Report (2000-01), where
different from the PRSP
Sources: 1- MoEC Basic Statistics Education (BSE)
2- Household Budget Survey 2000-01
Many of the out-of-school children were registered for complementary basic education programs in 2002
but actual enrolment in non-formal education is still low. To rectify this situation, Government is
implementing its new strategy for adult and non-formal education beginning 2003/04.
In the past two years, there has been some improvement in the pass rates in the primary school leaving
examination, with a peak pass rate of 29% in 2001. However, a call for further quality improvement is
still in order. Achievement of the PRS target of a 50% PSLE pass rate by 2005 seems to be unlikely.
Transition rate from primary to secondary school has increased from 16% during the late 1990s to about
20% largely due to the 50% expansion of secondary school places between 1997 and 2003. Nonetheless,
the absolute level of transition remains low. Overall gender gap in secondary enrolment is still large. This
7
is attributed to the poorer performance of girls in PSLE. Selection for secondary school places takes into
account both gender and academic performance.
Another challenge is eliminating illiteracy by 2010, particularly for rural women, the population with the
highest incidence of illiteracy. The recently launched Adult and NFE Strategy is a necessary and
important initiative in addressing the challenges towards achieving PRS/MDGs targets.
Challenges and Strategic Policy direction and monitoring
The tempo for attaining significant achievement in education will be enhanced. The focus will be on:
improving infrastructure and quality in teaching,
provision of pedagogical inputs, and incentives;
supporting vulnerable children,
reviewing curriculum to provide knowledge and skills useful to graduates in the labor market,
provision of non-formal education for older out-of-school children and illiterate adults; and
continued expansion of secondary schooling, with enhanced government-private sector
partnership.
Survival, Nutrition and Health
Because of lack of data the maternal mortality ratio was removed from the PRS indicator list and replaced
by births attended by skilled health worker. As the national estimates after 2000 are not available, the
general assessment in this section is based on the demographic and health surveys of the 1990s and
sentinel surveillance sites. Table 3 shows health and nutrition indicators and targets.
Table 3: Health Outcome and Nutrition Indicators, Base line and Targets
PRS indicator Base line Targets
estimate Year 2003 2010 2025
Total fertility rate 5.6 1997[1]
Infant mortality rate 99 1997 1] 85 50 20
Ratio of the IMR of the poorest quintile 1.25 1999[1]
to the IMR of the richest
Under-five mortality rate (MDG) 147 1997[1] 127 79
HIV prevalence in age group 15-24 (%) Male: 8 2000[2]
Fem: 13
% of children born to HIV+ mothers who
Life expectancy at birth
are HIV+ 52 1988[3] 52
Nutrition in the under fives:
Stunting (moderate-severe, %) 44 1999[1] 20
Wasting (moderate-severe, %) 5 1999[1] 2
Under-weight (mod.-severe,%) 29 1999[1]
% change in mortality attributable to malaria in under-fives – to be added in later reports / analyses
8
Source: 1 – Tanzania Reproductive and Child Health Survey 1999; 2 – National AIDS Control Program, 2002; and
3 – National Population Census, 1988
Infant and Child mortality: There have been no significant changes in infant mortality and prevalence of
fever in children under five during the 1990s. Sentinel site surveillance shows little net change in the
importance of malaria as a cause of child deaths, though there is some year–on–year fluctuations and
differences between sites.
HIV and AIDS:Data from blood donors show steady increases in HIV prevalence since 1996. Despite
widespread knowledge of HIV and some successful local initiatives in its prevention and control, there is
no significant improvement. In general prevalence is higher in women than in men and the gap between
male and female infection rates has increased. Prevalence in blood donors replaced prevalence in
antenatal clinic attendees as an indicator because of weakness in the ANC sentinel surveillance system.
The national HIV/AIDS survey being conducted in 2003 will provide a baseline against future trends.
Life Expectancy: Based on the 1988 census, life expectancy at birth was 52 years. Life expectancy is
expected to be lower now due to the effect of HIV. The forthcoming analysis of 2002 Census will provide
a definitive picture on trends and differentials in life expectancy.
Nutrition: There has not been much improvement in the nutrition status of the under-fives. Child
malnutrition is much worse in rural than urban areas and much higher in the poorest quintiles. About 16%
of children have a birth weight below 2,500 grams as a result of early pregnancies, illness and poor
nutrition status of pregnant women. Apparently, food insecurity and HIV/AIDS in under-fives will also
worsen the nutritional status of childre n.
Health Service Delivery
The number of outpatient visits has increased enormously since 1999, showing a 47% increase in absolute
numbers between 2000 and 2002. Indicators of the proportion of births attended by skilled health worker
and proportion of institutional deliveries showed a decline over the 1990s. Rural-urban disparities in
skilled attendance at birth are large, mainly due to shortage of adequately trained staff in rural areas. Both
urban-rural disparities and between poorest and richest increased during the 1990s. There has been
continuous improvement in DPT3 and measles coverage. DTP3 reached almost 90% coverage in 2002,
well above the targets for 2003 (Table 4).
9
Table 4: Health Service Indicators, Base line and Targets
PRS indicator Base line Actual Targets
Estimate Year 2003 2003 2010 2025
Annual no. of outpatient visits per capita Gov 1.3 2000-01 -
All 2.3 [3]
Health facility users‟ satisfaction (%) Gov. 66 2000- -
All 71 01[3]
Total number of family planning acceptors (new and old users) -
Births attended by doctor, nurse or skilled midwife (%) (MDG) 36 1999[2] - 80
Births taking place in govt health facility (%) 44 1999[2] -
DTP(Hb)3 immunization coverage (%) DHS 81 1999[2] ≈90(2002) 85
MoH 76 1999[1]
TB treatment completion (%) 78 2000[1] -
Sources: 1 – Ministry of Health 2002; 2 – Tanzania Reproductive and Child Health Survey 1999
3 – Household Budget Survey 2000-01
Challenges and Strategic Policy direction and monitoring
Analysis of 2002 Census and the forthcoming DHS in 2004 will provide more robust recent estimates for
many of the indicators of survival, nutrition status and health. Improvement in routine data system will
also provide a regular source for assessing trends in health service outputs. Government will focus on
ensuring that health services are accessible to the rural population and the poor through the provision of
adequate facilities and quality services. As part of the PRS review, further reflection will be made on the
application of user fees at primary level facilities to ensure universal access.
Government will scale up efforts in prioritizing measures to reduce transmission of HIV and its impact on
the welfare of those affected.
Water and Sanitation
Increasing access to clean and safe drinking water for the rural population is among the PRS priorities.
The target is to improve coverage to 55% of rural inhabitants by 2003. During 1990s there was
noticeable improvement in the coverage in rural areas, although the rate of improvement is unlikely to
reach the 2003 target. The time it takes to collect water has increased in urban areas, probably as a result
of increased pressure on water points due to increased urban growth rates, implying substantial time costs
on those who collect water, mostly women and children. No specific targets for sanitation were set.
Challenges and Strategic Policy direction and monitoring
The greatest concern is on the weakness of routine data system from collection, production and analysis
to dissemination at district, regional and national levels. Government is in the process of developing a
single, highly accessible monitoring system that contains all of the necessary data to be used by the
district, councils, regional secretariats and central government.
10
Extreme Vulnerability
The PRS recognizes vulnerable groups that require special attention, including AIDS sufferers, orphaned
children who most likely would get into the child labor market and its worst forms, the disabled, the very
old and refugees. There is no new information on trends of the five indicators for monitoring extreme
vulnerability. However, trends over the 1990s are known only for orphanhood that increased during the
decade, largely as a consequence of HIV/AIDS pandemic. The Participatory Poverty Assessment (PPA)
carried out in 2002 has brought up more qualitative information on various dimensions of vulnerability -
conceptualization, the most vulnerable social groups, impoverishing forces, and protection and risk
management programs.
Challenges and Strategic Policy direction and monitoring
The current indicators on extreme vulnerability cover a disparate set of areas and do not appear to have
been selected within a common conceptual and policy framework. The PPA will assist in refining
indicators for vulnerability in sectors that are already monitored. It provides also a basis for the
development of additional indicators. During the PRS review process the PPA will be used to concretize
Government policy towards vulnerability and to develop appropriate social protection programs.
2.3 Governance
The major challenges have been to identify and prioritize the key aspects of governance most linked to
poverty reduction. So far, governance has been addressed through the legal, judicial, and public
expenditure management systems and in checking corruption. The percentage of councils with clean audit
report reflects the proper use and accountability of government funds by local authorities. The number of
corruption cases reported is an indicator of the readiness of the population to report corruption and
willingness to combat it, while the number of convictions shows the promptness and effectiveness of
prosecution of cases.
In recent years, the coverage of the audit services has been increased, i.e. covering more local authorities.,
Most local authorities have been audited annually since 1998. However, only 10% of councils were
awarded a clean certificate, which shows weak accountability at the local level.
The number of corruption cases lodged increased from 33 in 2000 to 129 in 2002. However, the number
of convictions is low, recoding 6 in 2000 and 12 in 2002, attributed to the long delay in processing cases
before a conviction or acquittal is obtained.
11
The proportion of women among civil servants has remained steady at 39% over the past 3 years, with a
small rise to 40% in 2003, and when women teachers are excluded, the proportion of women falls to
about one third. Programs to enhance productivity and promotion of good industrial relations at the
workplace have been implemented in collaboration with workers and employers organizations. These
include workers education, women workers rights, occupational safety and health, social dialogue and
HIV/AIDS interventions. Social welfare services were promoted in tea plantations through renovation and
creation of daycare centers. Women‟s role in Parliament is still wanting, occupying only 27% of all seats,
despite constituting about half of population. However, the current situation represents an improvement
from the previous Parliament, in which women held only 18% of seats.
Challenges and Strategic Policy direction and monitoring
More urgent actions will be undertaken to increase the proportion of district councils given clean auditing
certificates. Faster processing of corruption cases is required to retain public confidence and engagement.
More robust actions will be undertaken to increase women‟s representation and involvement in
Government and Parliament.
2.4 Prospects of Monitoring Poverty Reduction
One of the most substantial changes in the PMS since 2002 has been the revision of the list of poverty
monitoring indicators in response to the monitoring requirements of Poverty Reduction Budget Support
(PRBS), Poverty Reduction Support Credit (PRSC) and Millennium Development Goals (MDGs). The
indicators in the Poverty Monitoring Master Plan (PMMP) were revised and supplemented in preference
to establishing an additional, parallel monitoring mechanism.
The focus of PRS/MDG indicators and the PHDR is to assess whether welfare has improved rather than
to report on progress in implementing the policies. Most outcomes and impact indicators are expected to
take some time to respond to policy changes, and they change only slowly once they respond. The PMMP
prioritized the selection of indicators including a number of slow moving impact indicators for balance. It
is appropriate that the PMMP define indicators that can be used to monitor poverty beyond the short-term
perspective of the PRS e.g. MDGs indicators; but it is then necessary to identify the indicators that can
reasonably be used for monitoring over the short term.
A number of important data collection and analysis activities are currently being undertaken and will
provide additional poverty monitoring data in the near future. Foremost amongst these is the analysis of
the Population and Housing Census 2002. Preliminary tabulations of population by district have already
been produced and more detailed analysis is ongoing. The census will provide updated information on a
12
series of poverty indicators including literacy, school enrolment and the level of schooling attained, child
and adult mortality, fertility, source of drinking water and unemployment. It will also provide information
on population by age group, improving the denominator used for many of the indicators based on routine
data, which can then be recalculated. This will be particularly important in education, where it will help to
resolve current uncertainties about enrolment rates. A particular benefit of the census is that data can be
highly disaggregated – down to district and below.
The Agriculture Survey conducted in 2003 will provide information on agricultural production that can be
used to update GDP figures and that will allow the calculation of three of the agriculture indicators for the
first time. This survey will be the first to use the „core poverty module‟ that standardizes the
measurements of basic socioeconomic characteristics across surveys, particularly those that are useful for
the prediction of consumption and poverty status.
The review and re-basing of the GDP and CPI series undertaken in 2003 is also noteworthy. It is essential
that both be based on recent data and on a sound and transparent methodology.
The national HIV/AIDS survey being conducted during 2003/04 will provide national seroprevalence
estimates, linked with information on knowledge and behavior. In addition, the report of the 2002/03
Tanzania Participatory Poverty Assessment finalized in 2003 provides an insight into vulnerability and
the processes by which households and individuals may become impoverished.
The Policy and Service Satisfaction Survey (PSSS) that was undertaken as part of the introduction of
performance management system into the civil service is currently being analyzed. It will give
quantitative information on people‟s knowledge of, and satisfaction with, government policies and basic
services, including health, education, water, roads and agriculture. This will provide a baseline for
assessing whether services are perceived to have improved or not.
13
III. SOCIO-ECONOMIC REFORMS IN 2002/03
3.1 Macroeconomic Performance
Tanzania has continued to experience steady economic growth over the last 4-5 years. During 2002 GDP
growth rate rose to 6.2% from 5.7% in 2001. The main sources of this growth were agriculture (5.0%),
mining (15% from 13.5% in 2001), wholesale and retail trade including tourism (7% from 6.7% in 2001)
and manufacturing (8% from 5% in 2001). Per capita GDP grew by 3.4% compared to 2.8% in 2001.
By the end of December 2002, the rate of inflation was at 4.4%, sliding further to 4.2% by March 2003.
The decline in inflation is attributed to improvement in the food supply situation in the country, following
good food crop harvests, coupled with steady implementation of prudent fiscal policies, supported with a
cautious monetary policy. However, in the 2002/03 season adverse weather conditions led to higher food
prices taking the headline inflation up to 4.6% by end-November 2003. Table 5 shows trends in selected
macroeconomic indicators.
Table 5: Tanzania: Selected macroeconomic indicators
Indicator/Year 1997 1998 1999 2000 2001 2002 2003*
Real GDP growth rate (%) 3.3 4.0 4.7 4.9 5.7 6.2 5.5
Real per capita income (US$) 240.2 256.9 259.4 261.2 264.1 265.3 …
Real growth of agriculture (%) 2.4 1.9 4.1 3.4 5.5 5.0 3.5
Real growth of manufacturing (%) 5 8 3.6 4.8 5 8 8.5
Real growth of mining and quarrying (&) 17.1 27.4 9.1 13.9 13.5 15 15.1
Inflation – annual average CPI (%) 16.1 12.9 7.8 6 5.2 4.5 4.6
November
Current account balance (US$) -403.5 -921.3 -860.1 -469.6 -479.5 -325.4
Merchandise exports (US$ m) 752.6 588.5 543.3 663.3 776.4 902.5
Export/Import ratio (goods) 65.6 43.1 38.1 49.6 52.1 59.7
Foreign Direct Investment (mil. US$)** 157.8 172.2 516.7 463.4 327.4 240.4
Foreign exchange reserves (months of imports) 3.8 3 4.1 5.6 6.3 8.9
Exchange rate (annual average, TShs/US$1) 612.1 664.7 744.8 808.4 876.4 978.9
Investment/GDP (%) 14.9 15 15.2 16 17.2
External debt service/exports (%) 36.9 36.4 27.2 28.6 21.6
Fiscal year 97/98 98/99 99/00 00/01 01/02 02/03 03/04
Domestic revenue (excl. grants)/GDP (%) 12.6 12.5 11.3 12.2 12.1 12.8 13.3
Total Govt expenditure/GDP at market prices 14.8 14.8 17.1 16.8 17.6 20.8 24.9
Fiscal deficit before grants/GDP (%) -2.3 -2.3 -5.8 -4.5 -6.6 -4.1
Growth of money supply (M2) (%) 11 11.1 15 12.5 12.3 13
Average deposit interest rate (%) 10 7.9 7.1 4.2 3.5 3.1
Average lending interest rate 24 24.5 22.1 19.6 16.4 15.7
*projections
14
Government revenue effort has continued to improve, with collection now reaching Tshs. 100 billion per
month. During fiscal year 2002/03 total revenue amounted to Tshs. 1,217.5 billion. Tax revenue for
2002/03 stood at Tshs 1,105.7 billion compared to Tshs 938.5 billion in 2001/02. Non-tax revenue was
Tshs 111.8 billion in 2002/03. Improved performance is attributed to high collections on income tax,
customs duty and VAT on domestic goods and services.
Government spending continues to be guided by the priorities set out in the PRS. Trends in actual
recurrent expenditures in the priority sectors and projections are shown in Table 6 (Table 18
includes data on development expenditures to priority sectors).
Table 6: Priority Expenditures within Priority Sectors, FY 2001/02 - 2004/05 (Jul–Jun)
(in billions TShs)
2001/02 2002/03 2003/04 2004/05
Actual Actual Budget Proj.
Education 344.9 436.2 502.3 564.7
Basic Education 116.6 171.3 371.3 417.4
Health 142.1 186.7 214.3 284.9
Primary Health 101.0 113.3 124.4 165.4
Water 32.5 51.9 64.4 87.7
Roads 179.6 190.2 236.0 289.5
Rural Roads 21.5 22.8 57.0 69.9
Judiciary 18.8 23.2 32.7 46.0
Agriculture and Food Security 31.9 60.2 93.1 112.3
TACAIDS 4.0 5.3 21.2 58.7
Total Priority Sectors 753.8 953.7 1,164.0 1,443.9
Total Priority Items 261.9 335.9 606.6 757.5
Source: Ministry of Finance
3.2 Structural Reforms and Private Sector Development
Government has continued to demonstrate commitment to develop a liberalized private sector-led
economy. Considerable progress has been made in the implementation of privatization policy as a whole.
As a result 259 public enterprise companies (comprising of two third of all public enterprises) and 210
non-core assets were placed in the hands of the private sector by June 2002. Out of the 259 privatized
enterprises 135 have been acquired 100% by Tanzanian investors. Out of 210 non-core assets divested,
Tanzanians acquired 180 through an open competitive tender system.
The Parastatal Sector Reform Program (PSRP) continues to make progress. Focus now is on privatization
of large utilities organizations and banks, including the Tanzania Electric Supply Company (TANESCO),
Tanzania Railways Corporation (TRC), the Tanzania Harbors Authority (THA), and the National
15
Microfinance Bank (NMB). Divesture of Air Tanzania Corporation (ATC) and Dar es Salaam Water and
Sewerage Authority (DAWASA) were concluded in December 2002 and February 2003 respectively.
The process of unbundling TANESCO into autonomous commercial entities is ongoing. A private
management company, which took over in April 2002 has begun to improve the finances of TANESCO.
Employment creation
The structural reforms undertaken by Government have had short-term implications in terms of job
losses. This has compounded the problem of unemployment mainly in urban centers. However, private
sector development is seen in the medium to longer term as a sustainable employment creation
mechanism. Government is supporting private sector investment so that it can create employment
opportunities and raise incomes. These initiatives have already started to bear fruits. For instance, in
2002 TIC approved 311 private sector investment projects in the manufacturing sector worth TShs 1,
024,536 million. These investment projects have the potential to employ 33,132 people. Government,
through its Time Bound program, is also creating skill training for 2000 families and 7,500 youth who are
already in worst forms of child labor or at risk of getting into it, with the budget of US$ 1,230,000 (2004-
05).
Government is creating an enabling environment for employment (jobs) creation through revisions of
employment laws, labor relations, dispute prevention and settlement and the regulatory framework. It has
established a Labor Exchange Center (LEC) to match skills of job seekers and job qualifications and
implemented a demand-driven skills training to promote self-employment in formal and informal sectors.
Government-private sector consultation mechanism
A formal consultative mechanism with the private sector has been established through the formation of
the Tanzania National Business Council (TNBC). The objective is to enhance private sector participation
in development. Issues emerging from dialogue between Government and private sector that have been
acted upon during the period under the review include:
i) Establishment of the Export Credit Guarantee Scheme.
ii) A comprehensive review of the micro credit schemes.
iii) Involving the private sector in the negotiations for the East African Community and the
SADC trade agreements.
iv) Nuisance taxes have been abolished.
v) Views from various stakeholders on inadequacies in the Land Act of 1999, including
collateralization are being processed for possible revision of the Act.
16
The Business Environment Strengthening in Tanzania (BEST) that has been approved aims at improving
the effectiveness of government/private sector partnership. The program is geared to provide better
policy, administrative, legal, regulatory and judicial environment for private sector development. Other
actions relate to the financial sector development in respect of improvements in the payments systems,
stronger insurance supervisory regime, and of the financial institutions such as the National Insurance
Corporation, Tanzania Postal Bank, Tanzania Investment Bank etc
3.3 Poverty Orientation of the 2003/04 Budget
Table 7 provides in brief the focus and orientation of the 2003/04 Budget; clearly showing increased
attention to poverty reducing measures.
Table 7: Highlights for the 2003/04 Budget Measures
SECTOR MEASURE
Health. Increased resource allocation to the sector
Inclusion of ambulances in item 5 to The Third Schedule of the VAT Act since they are also
part of medical equipment.
Water Introduction of Customs duty exemption on water drilling machines and equipment.
Increased resource allocation to the sector
Education. The 2003/04 budget has set aside additional resources for the education fund to support
children with academic ability but whose parents fail to pay schools fees due to poverty.
Increased resource allocation to the sector
Roads Increased resource allocation to the sector
Lands Earmarking and advertising land for commercial farming so as to attract investors;
HIV/AIDS Increased resource allocation to the sector
Legal and Increased resource allocation to the sector
Judicial System
Agriculture Introduction of simplified and transparent procedures for business activities in the districts;
sector Reduction of withholding tax on sale of fish from the current 2% to 1%.
Increased resource allocation to the sector
Shifting of milk packaging from Second Schedule of the VAT Act of 1997 to the Third
Schedule of the same Act, because it was misplaced in the Second Schedule.
Improve access to credit through established export credit guarantee scheme that guaranteed
cooperative unions.
Improve access to credit through guaranteeing micro-credit to small-scale farmers, small scale
fishermen, small scale livestock keepers, small scale manufactures;
Provision of modern superior seeds to farmers at affordable prices.
Provision of subsidized fertilizers for Rukwa, Mbeya, Iringa and Ruvuma regions so as to
boost maize production and eliminate the risk of famine in the country;
Government is working on plans to start a bank that will cater for the requirements of large and
medium scale fishermen, livestock keepers and farmers;
Government has introduced a fund to cater for livestock development starting with this budget.
Government has allocated more resources to the Export Credit Guarantee Scheme
Structural The privatization Trust has been established to enable many people especially those with low
Reform incomes, to participate in the privatization of state parastatals;
Government has set aside Shs 4,000 million for payment of terminal benefits to employees
who will be retrenched in certain key parastatal organizations under privatization, and
employees who will be retrenched from District Councils.
17
Private Sector Government has allocated funds in the 2003/04 budget to guarantee loans for SMEs
Development The current Income Tax Act No.33 of 1973 will be reviewed with a view to putting in place a
new law to cater for the modern economic and business environment.
Employment The Government has allocated funds for special projects focusing on economic growth,
employment creation, and exports.
Governance Abolish a number of levies and fees charged by Local Governments and remain with very few
of them which are beneficial to the people in rural and urban areas.
The 2003/04 budget has made a special allocation for salary reviews, that will also include
salary adjustments for Government institutions
The Government, with effect from January, 2004 will start paying salaries to Village
Government and Ward officials
The budget for 2003/04 has set aside Shs 5,000 million to start construction work of the new
National Assembly Hall.
The 2003/04 budget has increased allocation to security agencies to enable them to confront all
sorts of crimes.
Government has raised the minimum pension entitlement to Shs 20,000 per month
In order to enable the District Commissioners to execute their duties more efficiently, allocated
funds, with effect from next financial year are channeled directly to their respective districts
and not through the Regional Administrative Secretaries.
3.4 Globalization and Poverty
It is important that the country positions itself to cope with the globalization process so as to benefit from
it in the context of the Development Vision 2025 and the PRS. Increased trade liberalization at global
level and growing regional integration pose great challenges for economic growth and sustainable
development that are critical for poverty reduction. Among measures undertaken in responding to the
challenges of globalization include:
Diversification of exports and processing of agricultural produce so as to add value, improving
efficiency in production, processing and marketing of current and potential export commodities;
Initiatives to establish the Export Processing Zones (EPZ) have been undertaken to promote exports.
Developing strong financial systems, financial markets and sound economic policies, e.g. enhancing
participation of SMEs in the global arena. The SME Development Policy approved in 2003.
Putting in place sound, consistent and stable investment policies to encourage development and
promote investment, technology and the export sector.
Reviewing aid relationships between Tanzania and development partners to create local ownership
through the implementation of Tanzania Assistance Strategy (TAS).
Being proactive in furthering intra-regional trade and other forms of regional cooperation.
Increased investment in education, research and health sectors and IT as prerequisites for gaining
from integration into the world economy.
18
Enhancement of private sector development through implementation of BEST program.
Participation in the “Development Round of Trade Talks” with an objective to urge rich nations to
make the WTO Doha Development Agenda a reality and agree to remove trade barriers.
Push for a common position among and within developing countries to allow for removal or lower
trade barriers between themselves and hence foster better access to each other‟s markets.
Tanzania is also in the process of creating more awareness to the community and address
globalization issues in a more holistic approach.
3.5. Public Debt Developments and Management
With the objective of strengthening debt management (both external and domestic) Government launched
the National Debt Strategy in August 2002. Since then the following measures have been implemented:
(i) The legal and regulatory framework has been strengthened by the amendment of the Loan,
Securities and Grants Act of 1974.
(ii) The amendment has vested all powers of debt contraction and management with the Minister for
Finance based upon advice of the National Debt Management Committee.
Debt relief under the enhanced HIPC initiative received a boost from the cancellation of debt by all the
Paris Club members except for Brazil and Japan under the Paris Club VII agreements. Government will
continue to strive for further debt cancellation from these two members as well as the Non-Paris Club and
commercial creditors on the same terms. Government introduced a 10-year Treasury bond in October
2002 in addition to the 2-year, 5-year Treasury bonds. Government has gained flexibility in restructuring
and extending the term of domestic debt that was previously heavily front-loaded. Implementation of the
recommendations of the NDS is expected to reinforce these initiatives.
19
IV. IMPLEMENTATION STATUS OF THE PRIORITY SECTORS
This chapter presents the performance of priority sectors in relation to the identified priority activities in
each of the sectors including (i) primary education (ii) rural roads (iii) water and sanitation (iv) legal and
judicial systems (v) primary health care and (vi) agriculture. The next steps or planned actions for all PRS
sectors and crosscutting issues are included in the policy matrix.
4.1 Primary Education
Overview
During 2002/03 the Government with support from development partners continued to implement the
second year of the five-year Primary Education Development Program (PEDP), which is one of the first
components of the Education Sector Development Program (ESDP). The aim has been to sustain the PRS
targets for 2003 focusing on expansion of enrolment, improvement of quality, capacity building and
improvement in management and strengthening the institutional arrangements.
Progress and Achievements
Progress towards the PRS targets identified in PEDP is given below:
In 2003 1,475,889 pupils were enrolled as against a target of 1,600,000. The enrollment target was
not met because most of eligible children were enrolled in the first year of PEDP implementation.
Standard One enrolment for 2003 is above the PRS target of 85% of school age children.
School mapping exercise coverage expanded from 82 districts in June 2002 to 98 by June 2003 of
which 53 districts were micro-planned. An additional 16 districts were to be micro-planned by
December 2003.
The Gross Enrolment Ratio (GER) in year 2003 is 105.3% compared to 100.4% in year 2002.
The Net Enrolment Ratio (NER) (Age 7–13) has risen from 80.7% in year 2002 to 88.5% in 2003.
This increase is attributed to the abolition of school fees and other enrolment related contributions
from parents. PRS target of raising NER to 77% by 2003 has thus been surpassed (Tables 8a and 8b).
The transition rate from primary to secondary education has risen by 0.7% from 21% in 2001 to
21.7% in 2002. The small rise in the transition rate is attributed to the increase in the number of
secondary schools from 937 (2001) to 1,024 (2002).
Dropout rate in primary schools stands at 4.7% in 2003 as opposed to 6.6% (2000). However, the
achievement is still low compared to the target of reducing the dropout rate to 3.0% by year 2003.
20
Table 8a: Gross and Net Enrolment Ratio (GER and NER) By Sex and Region, 2002
Male Female Total Male Female Total
Region GER GER GER NER NER NER
2002 2002 2002 2002 2002 2002
Arusha 99.8 96.5 98.2 79.5 77.3 78.4
Dar es Salaam 104.3 103.0 103.6 86.7 88.6 87.6
Dodoma 87.9 85.0 86.5 68.2 67.2 67.7
Iringa 103.2 103.2 103.2 85.2 86.1 85.7
Kagera 105.3 102.6 104.0 85.3 84.1 84.7
Kigoma 108.9 96.8 102.8 88.5 79.9 84.2
Kilimanjaro 103.1 99.3 101.2 85.9 83.7 84.8
Lindi 84.4 77.0 81.0 70.4 65.0 67.6
Mara 115.1 105.0 110.0 93.0 86.5 89.7
Mbeya 103.9 101.8 102.8 84.9 84.9 84.9
Morogoro 103.9 98.0 10.9 80.5 78.7 79.6
Mtwara 91.0 90.5 90.8 76.7 76.2 76.4
Mwanza 109.9 102.0 105.9 91.4 86.6 89.0
Pwani 114.7 102.9 108.7 92.5 86.0 89.2
Rukwa 93.9 86.0 89.9 74.1 70.0 72.0
Ruvuma 101.8 98.7 100.2 81.3 80.1 80.7
Shinyanga 93.5 86.7 90.1 74.8 70.9 72.8
Singida 103.0 100.3 101.7 76.6 76.5 76.5
Tabora 88.4 79.2 83.8 73.1 66.9 70.0
Tanga 101.7 96.0 98.8 84.6 80.2 82.4
Grand Total 101.2 96.1 98.6 82.1 79.3 80.7
Table 8b: Gross and Net Enrolment Ratio (GER and NER) by Sex and Region, 2003
Region Male GER Female Total GER Male NER Female Total NER
2003 GER 2003 2003 2003 NER 2003 2003
Arusha 106.3 100.4 103.4 89.5 85.6 87.5
Dar es Salaam 110.7 109.5 110.1 93.7 96.4 95.0
Dodoma 89.2 85.8 87.5 72.7 70.7 71.7
Iringa 111.5 108.5 110.0 94.0 93.1 93.5
Kagera 110.7 106.8 108.7 91.1 90.4 90.7
Kigoma 117.3 107.0 112.1 96.4 89.1 92.7
Kilimanjaro 107.0 101.5 104.2 91.9 88.2 90.1
Lindi 89.5 80.9 85.2 75.7 69.2 72.4
Manyara 109.2 103.6 106.5 85.5 81.7 83.6
Mara 125.3 115.5 120.4 103.1 97.7 100.4
Mbeya 112.1 107.7 109.9 96.5 94.3 95.4
Morogoro 107.2 100.0 103.5 85.0 82.5 83.8
Mtwara 98.3 93.3 95.8 84.4 80.5 82.5
Mwanza 120.9 113.0 116.9 102.1 97.7 99.9
Pwani 120.9 107.3 114.0 98.7 89.8 94.2
Rukwa 102.4 91.2 96.7 83.2 76.7 80.0
Ruvuma 107.4 102.7 105.0 89.2 86.5 87.8
Shinyanga 104.3 95.7 100.0 86.5 81.2 83.8
Singida 111.5 106.6 109.1 86.0 84.5 85.3
Tabora 93.2 82.5 87.8 78.9 71.5 75.1
Tanga 112.5 105.3 108.9 95.7 90.2 92.9
Grand Total 108.6 102.1 105.3 90.4 86.7 88.5
Source: MOEC
21
To enhance quality of teaching and learning and to reduce the shortage of teachers across schools and
regions, the government recruited 10,719 new Grade “A” teachers out of the targeted 11,651 by May
2003. This is 92% of the target. The failure to employ in some districts is a result of unattractive
working environment including, among other things, poor housing conditions for teachers.
In order to meet the increased demand for teachers, the government increased the number of trainees
in teacher training colleges. The pre-service teachers training enrollment expanded from 9,728 in
2002 to 15,285 in 2003.
In-service training of teachers is also being conducted through Teacher Resource Centers (TRCs) and
distance learning. In 2002, a total of 149 (86 male and 63 female) in-service grade A teachers were
admitted in Teacher Training Colleges and in 2003, 484 (234 male and 250 female) teachers were
enrolled. Training of 763 facilitators to upgrade 50,000 grades “C/B” teachers to grade A was
conducted. In-service and pre-service teacher professional development programs have been
developed to integrate In-Service Training Program (INSET) into PEDP. These programs aim at
enhancing the quality of the learning environment.
The pass rate in standard 7 examinations has increased from 24.9% (2001) to 27.1% (2002). The
recruitment of qualified teachers, improvement of school inspection service and provision of quality
teaching and learning materials are undertaken to attain the pass rate of 50% by year 2005.
The gender enrolment parity ratio in Primary Schools was 1:1 in 2002 and is still maintained while in
secondary schools the gender parity ratio has increased from 1:0.87 (2002) to 1:0.93 (2003).
For the implementation of national application of USD 10 (Tshs 10,000/=) capitation grant per pupil,
a total of Tshs 32.19 million was disbursed to councils for 6,536,798 pupils in 2002/03. This is
equivalent to USD 4.9 per pupil.
To enhance teaching and learning processes and improve the quality of education. The inspectorate
system inspected various education units in 2002. The results are shown in Table 9. In all categories
of education units the targets were met or exceeded.
Table 9: Education Units Inspected 2002
Education Unit Target Inspected %
Pre-primary Schools 2,879 3,918 136.1
Primary 6,402 7,043 110.0
Special Education Schools 118 121 102.5
Adult Education Center 6,402 6,726 105.1
Secondary 506 529 104.5
Teachers Training Colleges 42 42 100.0
Source: MOEC Budget Speech (2003)
22
The enrolment rate in secondary schools (Form I-IV) increased by 8% (2003). Therefore the PRS
target of 7% by 2003 has been reached.
Lessons and Challenges
Some of the Councils have shown weakness in the use of funds as per action plan. This weakness
delays the release of funds by donors for the quarter that follows. Other councils do not adhere to the
specified standards for construction of classrooms and teachers‟ houses nor do they follow criteria for
the management of primary schools.
Some of the Councils‟ Directors and District Education Officers do not inform Head Teachers and
School Committees about the amount of funds released by the central government. As a result Head
Teachers, School Committees and the society are unable to follow up, or participate fully in the
implementation of PEDP activities.
Costing of interventions
Table 10: Estimated Financing Requirements for the ESDP 2002/03 – 2005/06 (in million Tshs.)
2002/03 Actual 2003/04 2004/05 2005/06
Primary Education Expenditure Budget of Projections Projections
Requirements Tanzania
1. Primary Education
Capitation grant 62,298.3 63,342.9 67,762.8 74,212.3 77,102.4
Investment grant/
Development 160,990.0 62,326.2 148,253.0 181,451.4 199,596.5
Recruitment of New
Teachers 10,310.0 8,230.7 13,700.0 13,511.4 14,862.5
2. Secondary Education
Construction and
furnishing New
classrooms and
laboratories 3,300 6,374.2 3,937.5 4,725.0 5,670
Supply of textbooks and
other teaching and
learning materials
2,160.0 5,469.0 5,186.5 6,223.8 7,468.6
Science teaching
equipment for secondary
schools 190.0 331.5 687.6 825.1 990.1
Rehabilitation of
secondary school
Physical facilities. 4,800.0 1,474.6 850.2 1,020.2 1,224.2
3. Teachers Training 61,100.0 1,685.4 7,620.0 69,540.0 69,540.0
4. HIV/AIDS 1,390.0 587.7 547.9 1,520.0 1,520.0
TOTAL 306,538.3 149,822.2 248,545.5 353,029.2 377,974.3
Source: 1. MoF and PO-PP Budget Guidelines (2003/04 – 2005/06)
2. 2001/02 and 2002/03 Budget books
23
4.2 Roads
Overview
Overall road network improvement in the past three PRS years has increased the accessibility of rural
areas, thus improving the flow of people and commodities. Agricultural, forest and fisheries products can
more easily reach urban and rural market centers. Manufactured goods such as household goods and farm
implements more easily flow into rural areas. However, increased number of accidents due to over-
speeding raises concern. Measures taken to address the concern include road user education campaigns,
enforcement of traffic regulations and construction of speed humps on some highways.
During the financial year 2002/2003 the following planned actions were to be implemented by the
government in order to improve the road network conditions taking into consideration the poorest regions.
The Government to continue allocating Tshs. 1.84 billion monthly to improve transport link to the
northwestern and southern regions of the country.
To increase normal budget allocations to rehabilitate feeder, district and regional road network in the
poorest eight regions.
To give special attention to footpaths, tracks and trails and to mobilize communities in carrying out
needed improvement
To carry out routine maintenance, emergency repair and spot improvement in all districts to ensure
uninterrupted use of the roads.
Develop and prepare a program similar to the “Urgent Road Rehabilitation Program” (URRP) for the
districts, feeder and urban roads.
Improve the capacity of district engineers to manage execution of road maintenance works at district
level.
Progress and Achievement
The use of the Tshs. 1.84 billion per month (Special Project).
The Government allocated funds for the improvement of the transport link to the Northern-Western and
Southern regions of the country by upgrading to bitumen standard some road sections on the Southern
Corridor namely Dar es Salaam-Lindi-Mingoyo and Central Corridor namely Dar es Salaam-Dodoma-
Singida. The rehabilitation work is going on, which will cover a total of 468 km. A total of Tshs 25.36
billion has already been spent.
24
Three year Program on rehabilitation of regional roads
This involves road works on 923 km of road network in four regions (Kagera, Dodoma, Singida and
Tabora), which are under ADB and GoT financing, and regional network rehabilitation program
involving about 320 km under OPEC and GoT financing for Lindi and Kigoma regions.
Maintenance Works
Government continues to address capacity requirements for District Engineers to manage the execution of
road works, both maintenance and construction.
Improvement of district and feeder roads, footpaths, track and trails, and use of IMT.
During 2002/03, a program similar to the “Urgent Road Rehabilitation Program” (URRP) for the districts,
feeder and urban roads was developed. The District Roads Management System (DROMAS) is now
being considered for rolling out to the 92 District Councils, which were not in the pilot scheme. At the
same time a total network under PORALG of 7,049 km of rural roads (51.4%), of the planned 13,727 km
received routine, spot improvement and periodic maintenance. The expenditure for the work amounts to
63.4% of the planned budget of Tshs 13,854 million. A number of bridges, culverts and drifts were also
repaired and maintained at a cost of Tshs 1,961.2 million. The reason for achieving only 65% of the
planned works is inadequate capacity at district level, lack of competent contractors in some Councils and
late release of Road Fund allocation by Road Fund Board. Tshs 4,927 million earmarked for PORALG
for rehabilitation /construction from the development budget for year 2002/2003 was not released thus
making it difficult to rehabilitate the 4, 500 km originally planned.
Promotion of Labor Based Technology
The Ministry is currently promoting use of labor-intensive technology in rehabilitation of the road
network. More than 700 people (mostly laborers) are employed at the Chalinze–Melela roads
rehabilitation project. Out of these about 12% are women. The Makuyuni–Ngorongoro road that is being
upgraded to bitumen standard employs about 500 people (mostly laborers). 2% of them are women. In
the Southern Highland zone, several petty contracts were awarded to village contractors and communities.
Promotion of labor-intensive technology helps to generate income to local communities, which ultimately
contributes to poverty reduction in the country.
Lessons learned and Challenges
One of the major challenges is to enhance the capacity of local government authorities to manage
district, urban and feeder roads. The ongoing Local Government reforms need to go further to
25
establish a mechanism that will ensure that the road networks under their jurisdiction are managed
properly by local authorities. Strengthening local government capability through training and
allocation of skilled manpower remains critical for the achievement of planned work.
The Ministry has planned for the Urgent Road Rehabilitation Program (URRP), under the Trunk and
Regional Roads Network and the Ten Year Road Sector Rehabilitation Program (10YSRP). For
districts and feeder roads, the District Roads Management System (DROMAS)has been developed,
which needs to be rolled out to more districts.
Given the scope of work needed to raise the condition of the road network and ensure proper
maintenance, the financial resources available prove to be insufficient implying a need to go beyond
the Road Fund Resources.
Only 17% of the District road network is in good condition (requiring recurrent maintenance). The
rest are in fair and poor condition, which require development budget.
More efforts need to be directed towards establishment and reinforcement of technical departments
with the required personnel, tools and equipments, and enhance accountability and transparency.
Cost of Interventions
Table 11 shows the summary of program costing for the road sector.
Table 11: Summary of program costing (Tsh. Million)
Road Sector 2002/03 2003/04 2004/05 2005/06
Total Sector Requirement1 260,170 299,274 344,255 395,997
Allocation 208,415 258,655 321,005 369,156
Gap 51,755 40,619 23,250 26,484
Breakdown between Trunk and rural Roads
Trunk Roads & Regional Roads
Construction (Budgeted) 133,483 167,631 227,856 262,034
Maintenance 50,700 45,157 59,177 68,014
TOTAL 184,183 212,788 287,033 330,048
Gap 31,457 24,689 13,150 16,341
Rural Roads2
Construction 4,927 3,945 8,606 9,244
Maintenance 19,305 21,545 25,366 29,864
TOTAL 24,232 25,490 33,972 39,108
Gap 20,298 15,930 10,100 10,143
1. Total Sector Requirement is the overall road sector including the construction costs for trunk and regional,
district, urban and feeder roads
2. Rural Roads in this table means the road network under the Regional Administration and Local Government
26
4.3 Water
Overview
Availability of adequate water supply with good quality reduces time spent in fetching water, increases
health standards, and ensures a favorable environment for increased children‟s school attendance. The
economic use of water for irrigation is also an important consideration especially in drought prone areas.
Water is a fundamental natural resource for socio economic development. For example, the poor suffer
most during water shortages as they usually pay more per liter from informal water suppliers than their
affluent neighbors with water connections, putting their health at risk.
Progress and Achievements
Urban Water Supply and Sewerage service was fairly good compared to Rural Water Supply and
Sanitation during the period under review (2000/01-2002/03) due to donor commitments favoring urban
areas especially during the first two years of PRS implementation. Rural water supply service coverage
increased from 48.5% in 2000 to 53% in 2003, failing to hit the PRS target of 55% by 2003. During
2002/03 the sector recorded the following achievements:
(i) The sector has maintained coverage of access to water in urban centers at 73% for the second
consecutive year and has raised the sewerage service coverage in the two cities (Dar es Salaam and
Mwanza) and seven municipalities (Arusha, Moshi, Tanga, Morogoro, Dodoma, Tabora and Iringa)
from 10% in June 2002 to 17% in June 2003. This has been made possible because of the following
interventions:
Rehabilitation and expansion of urban water supply systems in Songea, Kigoma, Musoma, Bukoba,
Sumbawanga, Shinyanga, Mtwara (where 11 pumping stations were strengthened) and Lindi town
(where 10 deep boreholes were built for production of 4.2 million liters per day),
80% progress in implementation of the 2nd phase of expansion of water supply systems in Tanga,
Moshi and Arusha,
Installation of 2,300 water meters which increased installed meters to 50% of all customers in the
18 UWSAs,
(ii) Rural water supply coverage has increased from 50% in June 2002 to 53% in June 2003. Measures
behind this increase include:
Rehabilitation and expansion of 28 rural water schemes in 24 Districts and rehabilitation of 14
water pumps in 14 pumped schemes.
27
Completion of the Chalinze Water supply pumped scheme project that covers one small town and
21 villages with 105,000 beneficiaries.
Over 90% progress in the implementation of the East Kilimanjaro and Hai District rural water
supply projects that involves construction of the 8 large gravity water supply schemes for 779,958
beneficiaries in Rombo, Moshi rural and Hai districts in Kilimanjaro region.
Completion of impact evaluation of the Rural Water Supply Project that covered 15 Districts in
Iringa, Ruvuma and Mbeya Regions. The project serves 902,000 people.
Completion of impact evaluation of the Health through Sanitation and Water Project (HESAWA)
that covered 17 districts in 3 regions (5 in Kagera, 8 in Mwanza and 4 in Mara). The project serves
3,248,000 rural inhabitants. This coverage is equivalent to 61% of the total population.
Construction of 328 water wells in rural areas and 100 water wells in selected peri-urban areas.
Adequate project design manuals have been prepared and disseminated to District Water Engineers
for enhancing community and private sector participation in water service delivery.
(iii) Government launched the National Water Policy of 2002 in March 2003. The new policy underlines
issues of sustainable management of water resources with emphasis on equitable allocation and
environmental conservation, private/public sector partnerships, community participation through
demand responsive approaches, inter-sectoral coordination, collaboration and information sharing,
gender awareness and mainstreaming, use of appropriate technologies, promotion of rainwater-
harvesting technologies, and appropriate institutional and regulatory framework.
(iv) In reinforcing legal and institutional involvement of local communities and the private sector in
developing water supply schemes, Government continues to sensitize communities, private sector and
Local Government Authorities to participate in developing water schemes, protect water sources and
enact by-laws to protect water sources in their respective areas.
(v) Divestiture of DAWASA has been completed. City Water Services Ltd has taken over DAWASA and
undertakes to improve technical efficiency of existing water and sewerage systems and ensure reliable
services to about 3 million beneficiaries in Dar es Salaam city, Kibaha and Bagamoyo.
Lessons learnt and challenges
Capacity building of village water funds management is very important for enhancing community
ownership of water schemes through meeting their operation and maintenance costs and developing
new sources of water in the same areas. A legal framework to govern the operations and management
28
of the Village Water Funds to ensure transparency and avoid mismanagement and particularly
misappropriation of these funds is being worked out through the ongoing review of water legislation.
Water users and Local Authorities need further sensitization for increased participation with ultimate
goal of reducing donor dependency.
Sector financing is still fragmented into different major, medium and small projects based on bilateral
agreements. The sector recognizes the need for a coordinated approach through a Sector wide
approach in planning,
Capacity at Local Government Authorities, which are central organs in implementation of water
sector activities need to be strengthened through merit recruitments and training of personnel.
Water Sector PRS indicators are ambitious, especially the possibility of reaching the 85% by 2010,
and therefore needs to be reviewed through a consultative process during the comprehensive PRS
review. At the same time, Water Sector co-ordination and steering of the sector reform process
continues to be strengthened.
Implementation, monitoring and evaluation of sanitation activities continues to be challenging due to
a stretch of uncoordinated obligations amongst three main implementing agencies (MoWLD, MoH
and PORALG). This challenge will be addressed through a consultative process during the PRS
review so as to determine clear and harmonized targets.
Costing of Interventions
During 2002/03 and 2003/05, the Development Budget share to Rural Water Supply rose by 100% as
indicated in Table 12, compared to about 30% decline in investment financing for urban water and
sewerage. Government believes that increased direct allocation for the water sector to district councils to
implement rural priority schemes will enhance capacities for managing increased expenditures and raise
service coverage of water supply in rural areas. The financing position for 2002/03 and 2003/04 in the
table below reflects budget ceilings. Following the Public Expenditure Review (PER 2003 Water Sector),
budget allocations for investment in rural water supply have almost doubled as shown in Table 12:
29
Table 12: Financing of the water sector Program, 2003/2004 - 2005/2006 (billion Tshs)
(June-July)
2002/03 2003/04 2004/05 2005/2006
Budget Budget Projection Projection
Recurrent expenditure 16.9 17.5 28.7 29.0
Salaries and wages 5.2 4.8 8.8 9.0
Other charges 11.7 12.7 19.9 20.0
Administration 1.6 2.7 2.9 3.5
Electricity 7.2 2.9 9.8 8.0
Operation and maintenance 1.6 4.8 4.6 5.2
Capacity building 1.3 2.3 2.6 3.3
Investment/Development 41.7 46.1 89.4 97.2
Rural water supply infrastructure 9.3 20.3 22.2 25.2
Urban water and sewerage 26.2 18.5 48.5 48.5
Water research, management, 5.9 4.4 10.0
6.7
Planning and Training
*Others 0.3 2.9 12.0 13.5
**Total expenditure 58.6 63.6 118.1 126.2
* “Others” means the Development budget shares going to Regions and the Local Government. This allocation has a
very strong bias in financing rural water supply schemes.
** Projections for 2004/2005 and 2005/2006 consider a change in sector planning through introduction of the sector
SWAP that incorporates LGA‟s planned sector requirements and donor commitments for rural and urban sub sectors
respectively.
The sector is planning the WSDS that will be in place by June 2004. This strategy is expected to guide
sector programs, implementation and financing modalities that will capture aid-financed spending that is
currently off-budget.
4.4 Legal and Judicial System
The Government is currently implementing the Legal Sector Reform Program. The Medium Term
Strategy and Action Plan 2000-2005 was reviewed in March 2003. Its implementation will enhance
timely and accessible justice for all, in line with basic human rights focusing on personal safety, access to
justice, overall efficiency, fairness, and transparency of the administrative system. Government financing
reflects this commitment.
Progress and Achievements
Various initiatives were undertaken in the year 2002/03 to improve efficiency and fairness in delivery of
legal and judicial services. These were:
A move by Parliament to open the legislative process to participation by civil society organization as
part of the legal reform process;
30
Recruitment of two Judges of Court of Appeal, 6 Judges of the High Court, 7 Resident Magistrates,
84 Primary Court Magistrates and 36 State Attorneys was undertaken in fiscal year 2002/03;
The introduction of the Alternative Dispute Resolution (ADR) system which has contributed to a
significant reduction in the backlog of pending civil cases in the High Court and Resident Magistrate
Courts. Government extended this system to all Resident Magistrates and District Courts in April
2002;
Training of 600 Primary Court Magistrates, 300 Resident Magistrates and 34 Judges of Court of
Appeal and High Court;
Establishment of the Human Rights and Good Governance Commission in March 2002, now
operational;
The preparations for Tanzania Accountability, Transparency and Integrity (ATIP) are being finalized
as part of the reform program. It has the objective of strengthening good governance;
Preliminary preparation of a comprehensive program for the rehabilitation of buildings and other
facilities of primary courts has started.
Lessons learned and challenges
Despite these achievements the sector continues to face the following challenges:
Formulation of the Legal Sector Policy;
Mainstreaming gender and HIV/AIDS issues in the legal sector, policy, plans and budget.
The changing social cultures of the people arising from urbanizations and expanding and intensifying
interaction with other cultures calling for an appropriate legal framework.
The new pluralistic democratic political environment coupled with the movement towards
participatory management of legal and social economic development;
The rapid expanding and institutionally complex private sector-led market economy and
globalization;
The vast growing electronic (e)-commerce. E-commerce raises many new legal issues including
those relating to regulation, taxation, contact, liability, patent, data protection, etc; and
The need to create a legal framework to cater for the needs of the National Development Vision and
Long term Development Strategy (Vision 2025).
31
Costing of Interventions
Table 13: Legal and Judicial Systems Costing of Interventions 2003/04
ACTIVITY SOURCE TOTAL COST (IN TSHS. MILLION)
OF FUNDS VOTE 40 VOTE 41 VOTE 59 TOTAL
Reducing the backlog of pending cases GoT 4,580.7 2,125.24 - 6,705.94
Enhancing supervision, division of work GoT/QST 1,717.57 1,012.76 - 2,730.33
and administrative support
Updating legal framework and legal GoT/QST - 1,049.25 42.34 1,091.59
research
Improvement of civil registration GoT - 268.36 - 268.36
Training GoT/QST 998.64 355.73 66.08 1,765.45
Improvement of accommodation GoT/QST 1,700.00 65.00 - 1,420.45
Transfers GoT 1,613.62 25.00 - 1,638.62
Establishment of new Divisions/ Institutions GoT 431.67 - - 431.67
Legal Sector Reform Program GoT - 2,841.22 - 2,841.22
TOTAL Basket Fund 11,042.2 7,742.56 108.42 18,893.18
4.5 Health Sector
Overview
According to HBS 2000/01 about 91.4% of the population are less than 10 km from a health facility and
75.4% are less than 6 km. Essential drugs and services are now available at all levels and the target is to
continue to improve the district health services. However, provision of quality health services is
constrained by dilapidated infrastructure, shortage of trained staff and limited management capacity.
Malaria continues to be number one killer disease, accounting for 17% of all deaths and approximately
30% of all hospital visits. Other diseases are Acute Respiratory Infections, waterborne diseases, skin
conditions and increasing chronic diseases such as hypertension and diabetes. HIV/AIDS continues to
threaten and has mostly affected the productive work force.
In 2003 MoH conducted a review of the health sector performance, which was preceded by a technical
review on district health services. The technical review was used as an input into the new Health Sector
Strategic Plan (HSSP), which was completed in April 2003. The new HSSP is expected to be a key step
towards the implementation of the second PRS. The new strategy aims at improving quality of health
services and client satisfaction at a cost the individuals and community can afford.
The new strategy integrates nine other strategies into three components; (i) District Health Services (ii)
Hospital Services and (iii) Central Level, and spells out their roles:
32
The district health services component focuses on quality service delivery within the context of
comprehensive district health planning.
The hospital component provides referral services. Regions will assure availability of supervisory
and technical support to councils; and ensure adherence to policy and guidelines.
The central ministry will be responsible for development of necessary policies and regulatory
framework, tracking policy implementation, reform management, monitoring and quality control.
The strategic plan highlights (i) greater integration of health services, (ii) the importance of human
resources, skill mix, and deployment and retention, (iii) the importance of Public Sector Reform process
and the role of Public Service Management Office and issues of pay reform and staffing levels, and (iv)
the role of PO-RALG in overseeing the proper functioning of the various levels in the health system; the
regional and district hospitals, health centers, dispensaries and communities. Furthermore having the
correct number of competent staff with the appropriate skills in the Regional Secretariat is emphasized.
Progress and Achievements
(i) In order to create the necessary linkages and adopt a common frame the PRS was mainstreamed
in the revised health policy and in the Health Sector Strategic Plan 2003-2008.
(ii) The Health Sector HIV/AIDS strategy 2003-2006 was developed and accepted by all stakeholders
and translated into MTEF activities for HIV/AIDS. It aims at integrating HIV/AIDS in the
functions of all the structures of Ministry of Health. Plans for introducing antiretroviral therapy
are at an advanced stage.
(iii) Births attended by trained personnel were sustained at 80%. Furthermore MoH is seeking to
improve the quality of work delivered by TBAs. A policy guideline on TBA activities was
developed and distributed.
(iv) Vaccination coverage rose to 88% for BCG, 89% for measles and 83% for DPT3 (EPI 2002).
(v) Malaria program is being strengthened through the Roll Back Malaria approach with vector
control, drug supplies and management protocols including intensification of research.
(vi) MoH has introduced a voucher system whereby all pregnant mothers will be provided with a
voucher, which will subsidize the purchase of an insect-treated bed net. In the Household Budget
Survey it is reported that 37.1% of all households are in possession of a mosquito net.
(vii) All 113 districts have been included in the HSR Program.
33
(viii) A resources allocation formula for basket funds was developed and accepted by the Basket
Finance Committee. This formula aims at redirecting resources to main priorities in the health
sector, with a special focus to areas where the majority of poor and vulnerable groups live.
(ix) The Health Boards are being rolled out to all 113 LGAs and the district hospitals. At lower level
in the health system Health Facility Committees are being established. Health Boards have been
established in 16 districts and 76 districts have been sensitized.
(x) CHF has been introduced in 23 districts. 72 districts have been sensitized and are ready to start
the CHF Program.
(xi) Accreditation of more private facilities is being undertaken by National Health Insurance Fund
and it is expected to strengthen service delivery.
(xii) Essential Reproductive and Child Health Package document was developed and distributed.
(xiii) Hepatitis B vaccine immunization was introduced countrywide.
(xiv) 47 new councils were trained in IMCI, community strategy for IMCI was developed, Kiswahili
versions of IMCI modules are now available and IMCI indicators have been developed.
(xv) The National Food and Nutrition policy Guidelines on Community-Based Nutrition has been
reviewed. Micronutrient supplementation on Vitamin A, Iron-folate and Iodine are going on.
Vitamin A supplementation coverage was over 90% in 2002 compared to around 22% in 1999.
(xvi) Information, Education and Communication materials that are tailored to meet requirements of
different level of health delivery were developed and distributed to all health facilities.
(xvii) 61,606 TB cases were reported in 2001 (MTUHA 2002). The TB and Leprosy unit reported that
the completion rate in 2001 of DOTS was 81% and the cure rate was 76.3%.
Lessons and Challenges
The health sector is still under-funded. The target for MoH has been set at US$ 9 per capita, although
according to the World Development Report (1993) US$ 12 is an absolute minimum to ensure
sufficient resource allocation to priority areas such as malaria, TB and HIV/AIDS. In the PER 2003
the allocation was USD 6.3 per capita. The current level of funding is approximately US$6 per capita,
leaving a gap of US$ 3 per capita from the target of US$ 9 per capita.
The sectoral allocation to health is increasing very slowly, from 7.5% in FY00 to 8.7% in FY03. A
Financing Task Force has been established with an aim of negotiating with MoF and donors to
increase the resources envelope.
34
HIV/AIDS and related diseases are a huge burden on the health care system. More than 30% of the
resources are spent on diseases related to HIV/AIDS. Surveillance on HIV among antenatal clinic
enrollees (2001-2002) showed prevalence of 9.6% (NSS). HIV/AIDS interventions are still not
sufficiently funded.
HSR needs a high degree of coordination with other ministries, donors and communities.
Inadequacy of staff in terms of numbers and skill mix: It will be necessary to look at deployment,
development, motivation, incentives and retention schemes
The information systems in the health sector need to be improved and coordinated. A Task Force on
information systems and performance measurement has been established. Routine data are not readily
available which makes it difficult to track progress in health sector outcome and impact.
Run-down and dilapidated health units due to lack of rehabilitation or repair need urgent attention.
Delays in disbursement of basket fund are still a problem.
Costing of Interventions
The MoH is every year preparing a PER and MTEF. The resources for 2003/04 are 6.6 USD per capita.
The budget for the year 2003/04 for the health sector is TShs. 141.08 billion. Table 14 shows the
breakdown of the costs of priority interventions.
Table 14: Financing of Priority Health Interventions, 2003/04 - 2005/06 (July-June) TShs billion
2003/04 2004/05 2005/06
S/N Priority Areas for PRS Budget Projections Projections
1 Drugs 22.60 36.40 39.31
2 Essential Medical Supplies 9.80 12.50 13.50
3 Strengthening of referral hospitals 20.70 35.90 38.77
4 Malaria Prevention and Control 8.50 9.90 10.69
5 Human Resources Development 5.40 15.07 16.28
6 Immunization Services (EPI) 10.90 13.25 14.31
7 Control of TB/Leprosy 2.20 5.14 5.55
8 Improvement of District health Services 2.60 5.15 5.56
9 Reproductive Health Care, IMCI and Contraceptive (Depo- 8.00 10.70 11.56
10 Nutrition
provera) 1.40 1.81 1.95
11 Environment Health Hygiene and Sanitation 0.13 0.29 0.31
12 Improve health services to Voluntary Agencies and DDH 7.30 7.30 7.88
13 HIV/AIDS Awareness Program 11.20 11.19 12.09
14 Public Health Research Services 14.10 3.53 3.81
Total recurrent expenditure 124.83 168.13 181.58
15 Development expenditure (rehabilitation of facilities and 16.25 20.31 21.94
equipment)
Grand Total 141.08 188.44 203.51
Source (PRS- PB 2002 – updated) MoH
35
4.6 Agriculture
Overview
The Agricultural Sector Development Program (ASDP) is an instrument for achieving the PRS objectives
in the Sector. The program spells out priority areas for investment in the context of the PRS. The broad
objective of the ASDP is to create an enabling environment for improving productivity and profitability in
agriculture, improve farm income and ensure household food security. Through the ASDP, the sector has
designed and is strengthening a system involving districts and wards and participatory approaches in the
design of DADPs. The DADPs act as a focal point for identifying priority areas for poverty reduction in
the rural areas. Through these teams, a community-based monitoring system will be strengthened for the
community to provide feedback on the outcome and impact on the agriculture interventions.
Available statistics show that during the implementation of the PRS, yield levels for major cereals such as
maize and paddy have increased due to improved adoption rates in the use of better seeds, better farming
practices and general increase in area under irrigation. As a result household incomes and food security
have improved.
Progress and achievements
During the fiscal year 2002/2003 priority has been to improve the productive capacity of smallholder
farmers and livestock keepers and the provision of favorable legal and institutional framework, aiming to
accelerate private sector investment. During the year the following progress and achievements were
made in the agriculture sector:
A. Sector Level
Initiated detailed formulation of key ASDP sub-programs (Phase II), including issuance of guidelines
for preparation of District Agricultural Development Plans (DADPs).
The local government taxes and levies were harmonized. Non-core (nuisance) taxes that have
negative impact on agricultural growth have been eliminated.
Private Agribusiness Sector Support (PASS) was implemented. As a result 77 gender balanced
farmers groups were organized. They received assistance on contract farming, input supply, producer-
price negotiations and advisory services. 78 businesses received financial linkage and 75 credit
guarantees were issued for agriculture investments.
36
A review of the role and funding arrangements of Crop Boards is underway in collaboration with the
Ministry of Cooperatives and Marketing
B. Crop Sub-Sector
Achievements made under crop sub-sector include:
Irrigation development:
For the year 2002/03 land under irrigation farming increased by 8,995ha thus totaling to 200,895ha
compared to 191,000ha under irrigation in 2001/2002.
Advisory, Research, Training and Regulatory Services Support
Extension services and Training:
Achievements made during 2002/03 include training of 6,688 farmers and 1,130 village extension
staff on participatory methodologies and broadcasting of 104 radio programs with regard to crop
production and distribution of 6 leaflets on agricultural technologies to farmers
Training to technical staff and farmers at the agricultural institutes continued focusing on commercial
farming. 6,031 farmers (2,524 female and 3,507 male) received formal training in Oxen plough
farming, crop processing and sugar cane production. The number of farmers trained during the year
increased by 59% compared to 3,803 farmers trained in 2001/02. An increase was attributed to an
increase in Ministry budgetary allocation to farmer training. In addition 1,079 farmers, of whom 491
were women, attended a special course on irrigation for paddy production in KATC Moshi.
Crop research services:
Nine (9) new breeder seeds for paddy, sorghum, beans, pigeon peas, soya, wheat, wheat potatoes and
UK 91 were generated from research institutions.
Improved Seeds:
For 2002/03, actual availability of improved seeds was 10,426 tons, equivalent to 35% of total
requirement. Seed production was carried out in both government seed farms, smallholder farms and
private seed production companies contributing 1%, 2% and 32% of the total requirements
respectively.
Agricultural Equipment:
For the year 2002/03 achievement made include:
o 274 big tractors, 75 power tillers, 19,319 oxen-ploughs and 2,107,550 hand hoes were imported.
37
o 83 hand small tractors were distributed to farmers.
o Oxenization centers were rehabilitated in 16 regions and about 520 extension staff and 8,717
farmers were trained on this aspect.
Crop pests:
It is estimated 30% of crops in the country is lost annually due to pests and disease outbreaks.
The Ministry in collaboration with district councils, farmers and other institutions managed to fight
pests and disease outbreak as the outbreak occurred. Outbreaks experienced include: quelea quelea
and parrots, locusts, army warms, rodents and various plant diseases. The outbreaks were contained
in 19 out of 21 regions in Tanzania Mainland. The ministry also in collaboration with other
stakeholders saved 90% of crops and grasslands invaded by armyworms.
Inputs credit:
The Inputs Trust Fund started to issue fresh loans for importers and input distributors through
banking arrangement system in collaboration with district councils.
Input Trust Fund signed contracts with Exim Bank and Kilimanjaro Cooperative Bank through which
loan amounting to Tshs 2.05 billion have been issued for various agricultural inputs.
C. Livestock Sub sector
Achievements made in this area include:
Animal Health Services:
A total of 39 zoo sanitary checkpoints were equipped to implement its activities and a total of 399 zoo
sanitary inspectors were trained
National Artificial Insemination Center (NAIC) was strengthened and a total of 41,250 doses of
semen were produced which is a 9% increase compared to 38,560 doses of 2001/02.
Newcastle disease thermo-stable vaccines continue to be produced and distributed. A total of 6.2
million chickens were vaccinated in 145 villages.
6 Veterinary Investigation Centers (VICs) continue with the disease investigations and surveillance,
out of these 4 VICs Mpwapwa, Mtwara, Tabora and Arusha were rehabilitated and equipped with
laboratory equipments.
A total of 60,000 doses of rabies vaccines were procured and distributed to 30 districts, which
reported rabies. Also, a total of 3,000 leaflets on rabies and 15,000 leaflets on modern livestock
38
keeping, pasture and range management, poultry, beef production and control of diseases were
produced and distributed.
The production and testing of the I-2 Newcastle vaccine continued. More than 13 million doses were
produced and most of it sold. The vaccine was distributed all over the country. The thermo stability
of the vaccine under different storage conditions was tested and the results suggested that the vaccine
can be kept under room temperature for about 1 month, 6 months in the refrigerator and for some
years when frozen.
Dairy production services
4,494 in-calf heifers were produced and distributed to smallholder livestock keepers, 3,880 were
distributed by NGOs and 614 were obtained from Government Livestock Multiplication Farms.
Introduction of Mpwapwa cattle breed at the smallholder farms resulted into increased milk
production in the central zone ranging from 4 – 6 liters/day with average production of 5 lts/day. This
excludes the amount sucked by the calves. An increase of about 4 extra liters is an achievement
compared to the local breeds that are producing hardly a liter per day.
D. Cooperative and Marketing Sub-sector
Achievements made in this area include:
Cooperative development:
Interested groups of people were sensitized to form Cooperative Societies in regions comprising of
disadvantaged group such as women, youth and people with disabilities: 150 Cooperative Societies
were formed in total.
123 SACCOS were registered whose memberships include farmers, fishermen, workers, women,
youth, groups and small traders. Also 16 SACCOS in Mbeya, Dodoma, Morogoro and Dar es Salaam
regions were monitored, evaluated and provided with management advisory services.
Marketing development services:
The Ministry, in collaboration with PORALG, is coordinating two projects dealing with construction
and rehabilitation of rural agricultural marketing infrastructure, Agricultural Marketing Service
Development Project (AMSDP). These projects are: Morogoro and Kongwa Rural Agricultural
Marketing Project funded by the French government which is expected to build a market center at
Kibaigwa in 2003 and Agricultural Marketing System Development Program funded by ADF/IFAD.
This program is implemented in 36 districts of Rukwa, Mbeya, Ruvuma, Iringa, Tanga, Kilimanjaro
39
and Manyara. In collaboration with other stakeholders, the Ministry is preparing the Agricultural
Marketing Policy.
Lessons and Challenges
Low use of agricultural inputs (such as improved seeds, farm machinery, agro-chemicals, fertilizers)
resulting into low production and productivity.
Unreliable crop and livestock marketing caused by poor marketing infrastructure - acting as
disincentive to producers.
Dependence on rain-fed agriculture and low use of technology by smallholder farmers and livestock
keepers leading into unreliable food production to satisfy both domestic demand and foreign market.
Inadequate extension services (technology dissemination) causing low adoption of agriculture
technologies by farmers.
Low crop product quality resulting into low prices and market uncertainty.
Inadequate capacity in managing agricultural projects and programs at district level.
Low level of investment from both public and private sector leading into low growth rate in the
sector.
Costing of interventions
Table 15: Summary of costing of sector programs 2003/04 – 2005/06 (Tshs. „Millions)
Priority Area for PRS 2003/04 2004/05 2005/06
Budget Projections Projections
Crop sub sector
Strengthening Agriculture Extension Services 541.5 920.5 1,196.7
Promote Client-oriented Agricultural Research 588.3 1,029.5 1,801.6
Irrigation Development 2,663.3 3,062.8 3,522.2
Control crop pests and diseases outbreak 908.9 1,045.3 1,202.1
Agriculture Mechanization and land use 782.5 899.9 1,034.9
Strengthening Agriculture Input Trust Fund ( AGTIF) 3,600.0 4,680.0 6,084.0
Strengthening strategic Grain Reserve (SGR) 3,026.5 3,480.4 4,002.5
Support to Post harvest and Agro processing 553 635.9 731.3
Strengthen Sub sector Policy, Regulatory and Institutional Capacity 1,093.7 1,257.8 1,446.4
Support to Internal and External Subventions 3,121.8 5,904.7 7,263.9
Sub-total Recurrent 16,292.0 21,240.4 26,425.7
Development expenditure
Constructions of irrigation structures 520.0 600.0 1,000.0
Research and Agriculture extension and training center rehabilitation 1,690.0 1,710.0 2,000.0
District Agricultural Development Program 4,000.0 7,000.0 13,000.0
Total Development 6,210.0 9,310.0 16,000.0
Livestock – Sub-sector
Develop and introduce livestock of high genetic potential as well as
formulation of feasible feeding packages in beef and milk production
(from 1600 lts to 2000lts of milk yield/lactation and from 100 kg to
250kgs 290.8 392.5 529.9
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Strengthen Veterinary Investigation Centers (VICs) to carry out effective
disease surveillance and early warning system, analyze, process animal
disease data. 226.4 305.6 412.6
Strengthen livestock production, input and regulatory services in order
to achieve quality assurance 70.0 94.5 127.5
Facilitate LMU in production of 1,000 heifers pending privatizations
aiming to increase the productivity 170.9 230.7 311.4
Strengthen rangeland management development in 50 local authorities
and provide water for livestock in drought prone regions.
592.3 799.6 1,079.4
Develop and strengthen the existing extension packages to be delivered
to the Districts aiming to improve small holder’s performance on animal
production, diseases, control, management, book keeping and husbands
197.1 266.0 359.2
To control and eradicate other zoonoses in particular tuberculosis and 154.2
other brucelosis. 208.1 281.0
Improve livestock, products, markets and other infrastructures to
increase the off-take rates of livestock. 123.6 166.8 225.2
Control and arrest the spread of trans boundary diseases such as
Contagious Bovine Pleuroneumonia (CBPP), African Swine Fever 427.7
(ASF), New castle disease (ND) etc in the country. 577.3 779.4
Strengthen and formulating ticks and tick-board disease control (dip
rehabilitation/constructions) and raise community awareness of tsetse 89.2
and tyrpanosomiasis control techniques 120.4 162.5
Cooperative and Marketing Sub-sector
Establishment and strengthening of SACCOS
7.0 10.3 13.9
Members Empowerment Program 110.0 148.5 200.4
Capacity building Cooperative Society through Export Credit Guarantee
Scheme (ECGS) 9.4 12.7 17.1
Inspection and Supervision Districts 112.7 152.1 205.4
Special Investigation and Enquiries 12.9 17.5 23.6
Promotion and Establishment of Cooperative Banks 61.6 83.1 112.2
Review of 1991 Cooperative Act (Code of Conduct for Cooperative 9.0
Management 121.5 164.0
Formulation and operationalization of enabling Agricultural Marketing
Policy by year 2004; 25.1 33.8 45.7
Monitoring and evaluation of Marketing projects (AMSDP) 14.8 20.1 27.1
Establishment of marketing development center by June, 2004 7.7 10.5 14.1
To expand and promote market potentials of non traditional crops (e.g.
cassava and millet) 20.5 27.7 37.4
Total – Sector 25,822.40 36,026.10 49,414.60
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V. CROSSCUTTING ISSUES
5.1 HIV/AIDS
Overview
In an effort to intensify the fight against the HIV/AIDS pandemic, the institutional framework for the
national response has been transformed from National AIDS Control Program (NACP) under the Ministry
of Health (MoH) to the centrally placed Tanzania Commission for AIDS (TACAIDS) under the Prime
Minister‟s Office. This transformation is meant to provide strategic leadership and multi-sectoral
coordination, advocacy, resource mobilization, monitoring and evaluation of the national response. The
commission has strong representation from the civil society. It has a fully staffed Secretariat since January
2003.
The Multi-sectoral Strategic Framework (NMSF) on HIV/AIDS
The Prime Minister officially launched the Multi-sectoral Strategic Framework (NMSF) on HIV/AIDS on
10 May 2003. The framework translates the National Policy on HIV/AIDS by providing strategic
guidance to the planning of programs, projects and interventions by various stakeholders in the fight
against HIV/AIDS. It identifies goals, objectives and strategies in line with international commitments by
the Government of Tanzania as incorporated in the Millennium Development Goals (2000) and the
Declaration of Commitment of the United Nations General Assembly Special Session on HIV/AIDS
(UNGASS) of June 2001. The framework also attempts to address the national aspirations with respect to
the Vision 2025, poverty eradication as outlined in the Poverty Reduction Strategy.
National Response
Although there are encouraging signs of increasing awareness and interventions from different parts of
the country by various public and private institutions and civil society organizations, more serious and
targeted interventions are necessary to have an impact on slowing down the rate of new infections and
protect the 85–90% of HIV free people in the community. Emphasis in the national response is therefore
directed towards increasing individual and community awareness on the risk of HIV infection of the
individual and families and its serious implications on the individual, the family and community.
Attention to HIV/AIDS in the workplace would also be an entry point to upscale national efforts.
Measures being taken include the following:
Government Ministries, Departments and Agencies are developing plans for mainstreaming
HIV/AIDS intervention into routine activities including workplace interventions and integrating
HIV/AIDS control activities in the ministry‟s MTEF. Many private enterprises have workplace
42
HIV/AIDS interventions including provision of anti retroviral treatment. There is much potential for
more involvement of the private sector in the national response to the epidemic.
In order to ensure that communities at the grassroots level have sustained HIV/AIDS interventions,
local government authorities are being supported in developing comprehensive HIV/AIDS programs
that involve all stakeholders. Regional Facilitating Agencies (RFAs) will provide technical assistance
to local government authorities and civil society organizations to empower communities in rural and
urban areas in responding to the epidemic. Guidelines for the establishment of District AIDS
Committees have been disseminated to all local government authorities aimed at facilitating more
community mobilization and involvement in the fight against HIV/AIDS. Modules for training
members of the District AIDS Committees and technical functionaries have been developed and
training was expected to start in November 2003.
Efforts to mainstreaming HIV/AIDS in the planning/budgeting process in the public sector have been
initiated. This is aimed at ensuring regular budgetary allocations for the sectors HIV/AIDS activities.
Codes for tracking HIV/AIDS related activities have been developed and will be applied in the fiscal
year 2004/05. Medium Term Expenditure Review (MTEF) for 2003/04 – 2005/06 for TACAIDS has
been developed and TACAIDS now operates own vote.
National monitoring and evaluation framework for the national response has been developed and core
team of trainers has been trained. A protocol for Tanzania HIV Indicator Survey (THIS) has been
developed and will be carried out in November 2003. This study will provide information on HIV
prevalence in the community.
The process of developing National Advocacy Strategy is ongoing. A draft outline has been
developed. An advocacy forum for religious leaders from all Christian and Muslim denominations
was held in March 2002. The leaders unanimously agreed to use their strategic leadership in the
communities to further promote awareness, care and support and impact mitigation in the fight
against the epidemic in line with their religious ethics.
Partnership
The national response initiative enjoys good partnership with Development Partners, civil society
organizations, the private sector and faith-based organizations. In recognition of the existing partnership
and transparency in the national response initiatives, Development Partners and Government signed a
Memorandum of Understanding (MoU) to reaffirm their joint commitment and support to the National
Multisectoral Strategic Framework on HIV/AIDS. The main thrust of the MoU is to enhance and
harmonize partnership between the GOT and Development Partners in the implementation of the national
43
multi-sectoral strategic framework on HIV/AIDS through a common program of work for planning,
management, resource mobilization and allocation and monitoring and evaluation. The Global Fund
Country Coordinating Mechanism (GFCCM) that brings together some 28 members from all sectors is a
good example of multi-sectoral coordination. Consultations are ongoing to expand the mandate of this
forum to other global and international multi-sectoral programs.
The Global Fund Grant Agreement for scaling up effective district response focusing on communities,
primary schools and the informal sector in Tanzania was signed on 3 July 2003, for USD 5.4 million for
one year. The World Bank funded TMAP agreement was signed on 27 August 2003 for providing USD
65 million and USD 5 million for Tanzania Mainland and Zanzibar respectively for the next five years.
Rapid Funding Envelope that has mobilized over USD 2.5 million from willing partners to finance short
term quick impact projects by civil society organizations and institutions is one of the innovative
approaches in the national response.
Collaboration with civil society organizations in the national response is being strengthened. A network
of AIDS service organizations has been formed (TANASO). Also, people living with HIV/AIDS
(PLHAs) are in the process of forming their Council to cater for the welfare of all PLHAs regardless of
their organizations.
Care and Treatment for people living with HIV/AIDS
Government and the Clinton Foundation have formulated a draft Care and Treatment Program that aims
at providing care and treatment to about 400,000 people living with HIV/AIDs in five years at an
estimated cost of about US$535 million. The policy, financial and human resources implications are
being addressed. To ensure sustainability and continuity, the program will be integrated into the existing
systems. A second five-year program will be developed in the course of implementation of the program.
5.2. Gender
Overview
In 2002/03 Government, together with other stakeholders, continued to mainstream gender within the
Poverty Reduction Strategy (PRS) particularly the MTEF/PER processes, and within the sectors so as to
address the gender specific issues and constraints related to poverty reduction. Government continues to
address the gender disparities in employment and income between women and men and conditions that
will reduce child labor.
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The focal ministries in this process were the Vice-President‟s Office, Poverty Eradication Division; the
MCDGC and the Ministry of Finance. The responsibility of gender mainstreaming within the line
ministries was left with the concerned sectors. A number of CSOs were involved in these efforts. The
MCDGC, with its special responsibility for promoting gender equity, prepared a 3-year master plan with
the overall objective of formulating a Gender Policy (2000). This plan and the ongoing PRS review will
integrate CSOs‟ efforts and their participation in PRS implementation and monitoring. The Ministry has
also initiated a detailed computerized gender disaggregated monitoring system that will supplement NBS
database and will enable the ministry to report fully on CEDAW, the Beijing Platform of Action and the
MDGs.
In 2002 the GOT published the results of two key surveys: the Household Budget Survey (HBS) and the
Integrated Labor Force Survey (ILFS) that included a special survey of children. Data from these surveys
show that gender disparities still persist. These findings have increased the recognition of the need to
mainstream gender in the PRS Monitoring System. Recent analyses such as the Poverty and Human
Development Reports for 2002, 2003 have paid considerable attention to the gender specific aspects of the
performance of all priority sectors. For further understanding of gender disparities within PRS monitoring
further detailed studies were conducted on African Gender Development Indicators (AGDI) and the
Female Headed Households (FHHs).
Progress and achievements
For 2002/2003, specific activities were planned in the context of the PRS and the following progress was
made towards achieving them.
Gender focal points
To institutionalize gender in central and local government PRS priority sectors, gender focal points
were appointed. A plan for providing such persons with the appropriate training and tools to carry
out gender mainstreaming was developed and will be discussed by the relevant stakeholders.
Reform of Laws that are Discriminatory towards Women
The reform of laws that are discriminatory towards women is ongoing within the Law Reform
Commission. In order to strengthen the implementation of the Law against Sexual Offences and
Physical Abuse (SOSPA), the MCDGC organized a workshop to discuss a National Plan of Action
for Combating Violence against Women. Meanwhile, NGOs have been working on creating
awareness about other discriminatory laws such as the Inheritance Law and the Land Law. The Legal
Reform Commission is working on the findings.
45
Capacity Building
As part of its attempts to promote gender within the sectors, the MCDGC held a Workshop for Permanent
Secretaries and Regional Administrative Secretaries in early 2003 on the need for mainstreaming gender
within the sectors and the LGA‟s. It also supported the training of gender trainers for Tengeru College to
enhance the mainstreaming of gender in the curriculum of this college that trains community development
officers. In order to develop an appropriate tools and training package for mainstreaming gender in the
public finance management modules, a study on gender budgeting status in Tanzania was undertaken.
Women’s Empowerment
In order to enable women to disseminate information about their products and to link them up with
prospective markets within and outside Tanzania, MCDGC in collaboration with NGOs supported
women entrepreneurs to participate in the Dar es Salaam International Trade Fair and other trade
displays. A survey is needed to see the effectiveness of such efforts.
The MCDGC has completed a study on the feasibility to set up a “Business Incubator” for women
entrepreneurs. A business incubator is a facility established to help entrepreneurs to launch or to
expand business, which in turn creates value and jobs. An effort will be made to find ways of
integrating this initiative in the PRS framework.
Women workers engaged in hazardous and low paying jobs have been assisted to form women
economic groups and have their capacities enhanced in organizational skills, job skills, business
management and marketing skills, savings and credit. 731 women workers have been organized into
14 economic groups to mobilize group saving. Jobs skills including mushroom farming, poultry
keeping, food processing and handcraft have been given to women. 1,026 child laborers have been
withdrawn from child labor. They were provided with alternatives for primary education and
vocational training.
Lessons learned/Challenges
There is a mistaken assumption that gender mainstreaming and monitoring is solely the responsibility
of the MCDGC. The MCDGC cannot do it alone; all sectors and programs at all levels need to give
gender a center stage. This is particularly necessary at the local government level where
implementation of most activities related to PRS takes place.
The importance of gender mainstreaming is beginning to be accepted but still not fully understood as
a development issue. There is need to have more gender disaggregated data and analysis to show the
46
role of men and women in household food security, incomes, and the provision of the other needs for
social reproduction to fully appreciate the role of gender in development.
Cultural beliefs about the role of men and women in society still persist in-spite of several workshops,
sensitization programs, and media coverage of gender specific constraints by females at all ages.
There is as yet no systematic modality to obtain information about the activities carried out by
sectors, NGO‟s and CBO‟s to mainstream gender. Some very significant activities are thus not
reported in the PRS Progress Reports. This will be taken care of during the PRS review process.
5.3. Governance
Progress and Achievement
During the financial year 2002/2003 Government continued with its efforts to promote good governance
in the public service delivery by implementing a number of macro-economic reform Programs aiming at
improving financial management and accountability, strengthening of the judicial system, reduction of
poverty and reduction of corruption. Specific undertakings during the year include:-
Specialized government agencies e.g. the Ethics Secretariat, the Commission of Human Rights and
Good Governance and the Prevention of Corruption Bureau (PCB), have continued to report quarterly
on matters brought to their attention.
The PCB conducted four researches on strategic sectors, which are proven to have high degree of
corrupt incidences. The researches involved are:
Corrupt practices in the importation of veterinary drugs
Corruption in local government‟s income and expenditure
Detailed study on the operations of the National Housing Corporation, and
Corruption loopholes in the fish industry in the Lake Zone.
The PCB has been strengthened by increasing its budget and by decentralizing from zones to regional
and district offices. In the financial year 2002/2003, the Bureau opened 38 offices in districts.
The commission for Human Rights and Good Governance conducted meetings with government
Ministries and Leaders to enlighten them on the workings of the commission. It has also met the
Civil Society Organizations that are engaged in the promotion of human rights.
47
The Labor Law Reform Task Force which comprised of representatives from the government,
employers, workers, civil society, academia and the private sector, finished phase one of its work and
presented to the government its report with two proposed Bills: on Employment and Labor Relations;
and Labor Institutions. These Bills seek to:-
Promote employment and labor standards in line with present socio-economic realities and in
compliance with Tanzania‟s obligation under international law.
Create new institutions in the labor sector to promote social dialogue by involving all the
important actors: the government, workers‟ and employers‟ organizations; create new
institutions and labor relations to promote social dialogue that would in turn pave way for
industrial peace needed to accelerate economic growth, employment, and poverty eradication
Operational procedures particularly the financial guidelines to the Local Authorities are now in place.
The Mass Media have been given a crucial role in Anti-Corruption Strategy. PCB in conjunction with
Transparency International, Tanzania chapter and Development Partners carried out seminars on the
role of vibrant media in exposing corruption. Courses of an investigative journalism were provided to
improve the performance of journalists.
A workshop for all Members of Parliament was conducted. The workshop looked at the state of
corruption in the country.
Government continues with the exercise of improving salaries of public servants, i.e., pay increases
were implemented for the year under the Public Service Reform Program.
The National Anti-Corruption Strategy and Action Plans of MDAs have been revised and printed.
Efforts are underway to promote participatory democracy and planning in which people plan their
own development through participatory rural appraised and decision making through the Tanzania
Social Action Fund (TASAF). Through the Fund 54 community service and infrastructure projects
have been completed in overt 30 districts of 13 regions in Tanzania mainland and Zanzibar. 690
projects are still under implementation.
The government has established the National Integrity Fund (NIF) to support the implementation of
Anti-Corruption activities and plans developed by MDAs. Tshs 800 million was apportioned for this
purpose in the financial year 2002/2003.
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5.4. Local Government Reform Program
Overview
The GOT and some of its partners developed a Local Government Reform Agenda 1996 – 2000, which
was endorsed by the then Steering Committee for the CSRP. To operationalize the policy and strategy
decisions, the Local Government Reform Program (LGRP) was designed and the Action Plan and Budget
were prepared for July 1999–June 2004.
The program implementation began on 1 st January 2000 in 38 Phase I Councils. Government and donors
formally reviewed implementation experience jointly in June 2001. The review team fully endorsed the
policies and strategies of the program and recognized the progress to date. Government, Development
Partners and key stakeholders endorsed the review of the reform. It became the starting point for the
participatory planning process and culminated in the production of the Medium Term Plan (MTP) and
Budget - July 2002 to June 2005. This is the current framework document of the LGRP and the Annual
Work Program and budgets are derived from it. Government and Development Partners are financing the
program jointly.
Planned Priority Interventions for 2002/03
Implementation experience has shown that the original overall plan, the Action Plan and Budget (APB)
1999 – 2004, was over ambitious and had unrealistic time horizon. The PSRP shows a series of broad
reform phases to 2011 and local government reform should also be seen in this 9-year time frame:
Mid-Term Plan 2002/05
The concept of phasing of the reforms in LGAs has been fundamentally changed in the current plan. The
Government‟s Policy Paper outlines a phasing strategy, but allows for alteration and different phasing
strategies based on experience and changing circumstances. The original APB, 1999- 2004, envisaged
the program having three overlapping phases catering for roughly one third of LGAs in each phase across
the whole range of reform activities. This plan envisages a different type of phasing, with all LGAs free
to implement reforms and central support being provided on a demand basis. In terms of fiscal
decentralization, only those LGAs that will meet agreed criteria will qualify in the first instance.
However, all LGAs will be assisted to meet the criteria and many reform activities. The activities during
the 2002 – 2005 MTP will dwell mainly on development, legal harmonization with sector ministries, and
harmonization of Public Act No.8 of 2002 with Staff Regulations 2000, capacity building, and reform
coordination with sector reforms.
49
Progress and Achievements
The following are some major achievements recorded through the reform process:
There is a clear policy statement on reform supported by the highest levels of government;
Legislation to enable the reforms has been enacted;
Regulations and guidelines to support the reforms have been issues;
Information on the reforms has been disseminated to all local authorities and to the public;
Regional Administration has been restructured in line with its new role;
38 LGAs are at an advanced stage in the process of restructuring their organizations;
Work on improving financial management in LGAs and on fiscal decentralization is underway;
The work of building capacity in LGAs is underway; and
Attitude towards reform is slowly changing among government officials and members of the
public.
Lessons Learned and Challenges
Implementation of the reforms to-date has been slow by the benchmarks of the original plans. It is now
clear that early expectations were unrealistically high. It is now recognized that the process of reforming
the local government system is a major undertaking, which involves changing not just the way central and
local governments carry out their business, but also fundamentally changing mind-sets at all levels of
government and the public at large. In addition, the following factors, among others, have hindered
implementation of the reforms.
Resistance to change at central and local government levels;
Lack of implementation capacity at PO-RALG and at LGA levels;
Weak financial management at LGA level; and
The sheer magnitude of the task
50
Costing of Interventions
Table 16: Costing of Mid-Term Plan of the LGRP
Cost Item 2002/03 Budget in 2003/04 Budget 2004/05 Budget in Total in Tshs.
Tshs.(000) in Tshs.(000) Tshs.(000) (000)
Governance 603,628 576,000 420,000 1,599,629
Restructuring 1,708,661 1,565,000 1,315,000 4,588,661
Finance 1,614,565 2,160,000 1,390,000 5,164,565
HRD & MGT* 3,676,245 2,365,000 2,140,000 8,181.070
Legal 682,435 350,000 580,000 1,612,435
PO-RALG 442,764 805,000 485,000 1,732,764
Reform coordination 213,999 160,000 80,000 453,999
Program Management 3,512,285 3,728,000 4,123,000 11,363,285
Grand Total 12,454,582 11,709,000 10,533,000 34,696,582
5.5 Human Capital Development
Human capital development is critical for the success of the PRS. The government reports progress on
the development of human capital under PRS‟s crosscutting issues. Focus will continue to be on
strengthening leadership and management qualities, meritocracy, and restoration of ethical conduct,
gender equality and pay reform. In this context the new Public Service Act No. 8 of 2002 that gives legal
backing to the modernization of the public service has been enacted. Performance management systems
have been established in 16 ministries and departments so far and will be established in others to ensure
that they set service delivery targets against which the public servants will measure their performance.
Several measures were taken to implement the Medium Term Pay Policy including annual enhancement
of salaries of public servants and the implementation of job evaluation. Training and capacity building
programs to enhance leadership and modern management capabilities in the public service are ongoing.
Notable achievements in gender mainstreaming in the public service are reflected in a sizeable increase in
the number of women at senior levels, 24% for Permanent Secretaries, 26% for Directors and 24% for
Assistant Directors. There has also been establishment of 19 executive agencies as part of Government
efforts to improve service delivery for selected functions that are operational in nature. These are
ongoing activities that will be continued and tracked under the Public Service Reform Program for the
Central Government and the Local Government Reform Program.
The public service and local government reform programs have developed through a consultative process;
so also were indicators to monitor progress on capacity building for the central and local government.
Progress and achievements in developing and strengthening human capital will then be assessed through
use of these indicators and reported in the PRS monitoring framework.
51
Government recognizes that children and young people are key to sustained future workforce. Specific
sectors contribute to improving conditions for children and young people, notably in education and health.
Critical cross-sectoral concerns, including the fight against HIV/AIDs, require close attention especially
as they relate to children and young people. Government will thus continue its efforts to identify and
address specific problems affecting children and young people and particularly facilitate access to skills
and vocational training programs.
5.6 Environment
Overview
Tanzania's natural resources and environment are the main source of peoples' livelihoods and the
backbone of the country‟s main productive sectors: agriculture, tourism and mining. Recent research by
the Participatory Poverty Assessment has confirmed that most people in the country directly depend on a
robust, healthy environment to support their income-generating activities and provide them with building
and cooking materials, food and medicine. Environment is thus critically linked to poverty at the levels of
livelihood, health and vulnerability, and has been identified as a priority cross cutting issue for the PRS.
Progress and Achievements
Considerable progress has been achieved over the past year to mainstream environment into the PRS
process.
A number of steps were highlighted in the last PRS progress report. Progress has been made on all of
these and in addition there have been other significant achievements. These include:
Strengthening institutional framework for environmental management - The Cabinet approved a new
institutional framework for environmental management in December 2002.
Environment framework law - Following approval of the institutional set up the VPO have led on the
development of a single environmental framework law with a first draft prepared for consultation in
December 2003.
Launch of Program to Integrate Environment into the PRS process. This program was formally
launched on 26th September 2003 and is supported by UNDP, Dry lands Development Center,
Poverty Environment Initiative, DANIDA and DFID. This program will be implemented by VPO
(PED, DOE), NEMC, NBS and PORALG commencing in the third quarter 2003. Outputs focus on:
knowledge on poverty-environment linkages; use of environment data in poverty monitoring system;
and, capacity building of government and non-government stakeholders.
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Environment Working Group - a cross-sectoral environment-working group (EWG) has been
established. The goal of the EWG is to promote the integration of the environment into the GoT
policies, plans to help ensure the sustainable use of Tanzania‟s environment and natural resources for
poverty reduction.
PER Environment – the first public expenditure review (PER) of the environment has been initiated.
This is expected to produce inputs into the medium term expenditure framework (MTEF), and
guidelines for sectors to mainstream environment expenditure into their sectoral PERs.
Utilization of poverty-environment data for use in PRS process - Preliminary poverty-environment
indicators were included in the revised indicator list for the poverty monitoring system for use by
PRBS/PRSC. Terms of reference of a detailed study on poverty-environment indicators were
developed and identification of consultants to undertake study is now underway. This study will also
work on improving agricultural indicators for the PMS.
Improved knowledge and awareness on poverty - environment linkages – Activities on this have been
developed for implementation under the program to integrate environment into PRS process. In
addition to this presentations have been given to a number of workshops and meetings attended by
government and non-government stakeholders. VPO are now producing a bimonthly newsletter on
poverty environment issues, copies of this newsletter will be placed on the VPO website when this is
established.
Integration of environmental management in the sectoral programs. Approval of environment units
for sectors, and development of strategic environment assessment (see below).
Agricultural survey – VPO with NBS worked on the design and questionnaire of the agricultural
survey to ensure it included relevant questions on environment sustainability and livelihood issues.
Sustainable development network – The former environmental champions and think tank have
proposed to establish a sustainable development network to give advice on poverty and environment
issues. Members of this group have continued to make inputs into the PMS thematic working groups.
Strategic environment assessment – Study completed on the use of strategic environment assessment
and poverty reduction.
PRSC - Environment sustainability has been explicitly mentioned in the performance action
framework for the Poverty Reduction Support Credit.
53
Capacity building. Appointment of Poverty Environment Advisor to VPO, and recruitment of Poverty
Environment Officer expected to commence work January 2004. Development of capacity building
and training program for VPO and other stakeholders for implementation in 2004.
Lessons and Challenges
A number of lessons and challenges have emerged over the last year as the Government has taken the
initiative on environment mainstreaming. These include:
Mainstreaming environment into PRS has varying understandings and perceptions on the sectors this
covers. There is a need to broaden this understanding to cover environment issues such as those
related to agriculture, forestry, wildlife and fisheries etc. to include other areas such as environmental
health, education, water, tourism, roads, energy and minerals.
At present attention to crosscutting issues is largely undertaken on an issue-by-issue basis. There is a
need for greater attention to how the different cross cutting issues are linked. For example, there are
clear links between gender and environment, and also between HIV/AIDs and environment.
While engagement with different government sectors and civil society organizations has commenced
on poverty and environment issues, involvement with local government and with the private sector
still needs to be addressed.
During the preparation of TOR for environment PER study it appeared that the work in Tanzania is
leading the way with few other countries having undertaken such a PER study. Given that it covers a
wide range of sectors and levels of government, this has presented a number of methodological
challenges that will need to be addressed.
54
VI. BUDGET FRAMEWORK FOR POVERTY REDUCTION PROGRAMS
6.1. Resource envelope: A macroeconomic perspective
The budget framework for poverty reduction in the year 2002/03 was based on the assumption of
continued sound and stable macroeconomic environment conducive to attaining high levels of domestic
savings and investment. While it was targeted that real GDP would grow by 6.3% in 2003, preliminary
estimates based on the first half actual show that this is likely to stand at 5.5%. Consistent with the
objectives of the Medium Term Plan for Growth and Poverty Reduction for the period 2004/05-2006/07,
the macroeconomic policy targets for the period are summarized as follows:
Attain a real GDP growth of 6.3% in 2004, thereafter up to 7% by 2006.
Continued reducing inflation rate to 4.0% by the end of 2004. It is expected to level off at 4% during
the 2004/05-2006/07, consistent with our major trading partners;
Domestic revenue collection is expected to reach 13.3% of GDP in 2003/04;
Restricting broad money supply (M2) to levels consistent with GDP growth and inflation rate targets.
Maintain adequate official foreign reserves of not less than a value equivalent of six months of
imports of goods and non-factor services.
Maintain a freely floating exchange rate, limiting interventions exclusively to smoothening wide
fluctuations and for liquidity management purposes.
Government continuing with tax restructuring in some areas so as to improve the entire tax
structure and remove nuisance taxes to enhance economic efficiency and reduce the nuisance and
burden to producers/tax payers. To expand the revenue base in the medium term Government
committed itself to a number of measures:
(i) To review legislations on Export Processing Zones (EPZ) and Income Tax Legislation with a
view to rationalizing them and to enhance the tax yield by closing loopholes.
(iii) Completing preparations and rationalizing tax and various fees of local government in order to
create conducive environment for the people in their efforts to produce goods and services.
(iv) Review the remaining exemptions with a view of abolishing them in order to expand the tax base.
(v) To review the tax contribution of the high-growth sectors such as mining.
(vi) To improve administration of tax and non-tax revenue and public corporation dividends to check
revenue leakages.
55
6.2 Budget frame consideration for financing of priority sectors
Government expenditure continues to be guided by the priorities set out in the Poverty Reduction
Strategy. Table 18 shows trends in actual spending.
Table 18: Central Government Expenditure, 1998/99-2003/04 (billion TShs)
98/99 99/00 00/01 01/02 02/03 03/04
Actual Actual Actual Actual Actual Proj.
TOTAL EXPENDITURE (INCLUDING CFS) 973.8 1,191. 1,258.50 1,626.50 2,091.10 2,607.20
90
TOTAL EXPENDITURE (EXCLUDING CFS) 748.5 925.8 954.7 1,296.10 1,787.40 2,198.60
Total expenditure in priority sectors 342.3 418.6 499.8 761.9 973.8 1,170.01
Education 164.9 218 254.9 344.9 436.2 502.3
Health 72.5 81.2 100.7 142.1 186.7 214.3
Water 14.4 14.5 18.3 32.5 51.9 64.4
Agriculture 14.9 21.6 19.1 31.9 60.2 93.1
Lands 3.4 4.2 5.1 8.1 20.1 6.0
Roads 66.7 70.8 92.5 179.6 190.2 236.0
Judiciary 5.5 8.3 9.2 18.8 23.2 32.7
TACAIDS/HIV AIDS 2/ 0 0 0 4 5.3 21.2
Total expenditure in non-priority sectors 406.1 507.2 455.0 534.2 813.7 1,028.5
TOTAL RECURRENT EXPENDITURE (LESS 565.9 565.9 668.5 951.4 1,286.50 1,570.3
CFS)
Recurrent expenditure in priority sectors 235.8 285.4 351.6 497.6 724.6 836.8
Education 117.6 158.9 189.2 282.1 422.9 471.1
Health 50.7 53.9 70.3 90.9 149.1 177.6
Water 7.1 5.4 8.1 15.5 16.5 17.5
Agriculture 8.6 13.7 10.3 17.2 36 47.7
Lands 2.8 3.4 4.2 7.4 4.8 5.4
Roads 43.9 42.2 60.7 65.7 71.9 84.5
Judiciary 5.2 7.9 8.8 14.8 18.9 24.9
TACAIDS/HIV AIDS 2/ 0 0 0 4 4.5 8.1
Recurrent expenditure in non-priority sectors 330.1 280.5 316.8 453.8 561.9 733.5
TOTAL DEVELOPMENT EXPENDITURE 182.6 359.9 286.2 344.6 500.9 628.3
Development expenditure in priority sectors 106.5 133.2 147.9 264.3 249.1 333.2
Education 47.3 59.1 65.7 62.8 13.3 31.3
Health 21.9 27.3 30.4 51.2 37.6 36.6
Water 7.3 9.1 10.1 17 35.4 46.9
Agriculture 6.3 7.9 8.7 14.7 24.2 45.4
Lands 0.7 0.8 0.9 0.7 15.3 0.6
Roads 22.8 28.6 31.7 113.9 118.3 151.5
Judiciary 0.3 0.4 0.4 4 4.2 7.8
TACAIDS/HIV AIDS 2/ 0 0 0 0 0.8 13.2
Total expenditure in non-priority sectors 76.1 226.7 138.3 80.4 251.8 295.0
CONSOLIDATED FUND SERVICE 225.3 266.1 303.8 330.4 303.7 408.6
1/ Original approved budget, with foreign development reallocations from energy to health and roads reflected
2/ Basket funds (education and health) are not reflected in development but in recurrent expenditure 3/ TACAIDS is a
Government agency formed in 2001 to coordinate AIDS related priority interventions. For fiscal years 1998/99-2002/03,
HIV/AIDS expenditure is shown as expenditure made by the TACAIDS Agency, while other HIV/AIDS expenditure was shown
under the health sector. However, for fiscal year 2003/04, all HIV/AIDS expenditure is shown as expenditure made by
TACAIDS, the Ministry of Health as well as other ministries, depts., regions and local Govts. Source: Ministry of Finance
56
Despite the measures presented above, Government has not generated sufficient resources to cover the entire
requirements. More measures are going to be taken in the medium term to enhance resource mobilization
and allocation for all sectors including non-priority sectors. In the 2003/04 budget the Government put in
place new measures to curb tax evasion, to reduce distortions and to eliminate nuisance taxes. The measures
also aim at increasing voluntary tax compliance. Noteworthy are measures to reduce smuggling and tax
evasion on petroleum products, entering religious NGOs into the Treasury Voucher system, removal of
impediments in the fisheries sub-sector and smuggling of fish by reducing the withholding tax on sale of
fish from 3% to 1%. Nuisance taxes, mainly levies and fees at local government level were abolished to
encourage development activities. In addition, the Government has adopted TRA‟s new corporate plan
(2003/04-2007/08) which sets a program for strengthening revenue collection through improved
efficiency of interface with taxpayers and overall governance so as to induce voluntary compliance. The
corporate plan focuses on modernizing its organization and operations, and improving its effectiveness. In
particular TRA will continue preparations for implementation of an integrated structure for domestic
revenue administration during 2004/05. TRA is in the advanced stage of implementation of a function-
based Large Taxpayers Department (LTD) that integrates VAT and income tax administration and that is
adequately resourced. In addition, there are plans for a complete transfer of an additional 100 large
taxpayers to the LTD. An integrated computer system for administration of income tax and VAT will also
be piloted in the LTD. TRA has also begun to integrate all district offices.
In the area of tax reform, the government submitted to the Parliament the new Income Tax Bill in February
2004 for first reading. The draft Income Tax Bill is based on the principle of self-assessment and addresses
a number of sources of revenue leakages. The Bill has been tabled in April Parliamentary session with the
Schedule of Amendments for final consideration. The new Income Tax Act is expected to be effective from
July 2004.
Given the projected resource envelope and expenditure requirements for 2003/04–2005/06 in Table 19(a)
& 19(b), the contribution of domestic revenue in total resources is expected to decline to 53% in the
2003/04 Budget. There will not be adequate domestic resources to meet all requirements for priority
sectors. As in the previous years, this situation calls for more support from development partners.
57
Table 19(a): Budget Framework 2003/04-2006/07 (in million TShs)
2003/04 2004/05 2005/06 2006/07
Budget Ceiling Projection Projection
TOTAL RESOURCES 2,607,205 3,328,237 3,344,372 3,308,546
Domestic revenue 1,393,026 1,588,392 1,766,453 1,988,546
Programme loans and grants 405,047 413,266 325,899 138,489
Project loans and grants 472,772 1,010,648 953,821 815,925
Basket support loans 70,982 10,759 10,917 11,076
Basket support grants 123,595 96,758 48,182 35,905
Recovery from NBC Bond - - - -
HIPC relief (ADB, IMF, WB) 103,425 83,100 85,100 85,100
Non-bank borrowing - 111,313 138,175 218,047
Bank borrowing 21,358 - - -
Adjustment to cash - - - -
Privatisation Funds 17,000 14,000 14,000 14,000
TOTAL EXPENDITURE 2,607,205 3,328,237 3,344,372 3,308,546
Recurrent Expenditure 1,799,765 2,081,981 2,189,655 2,287,963
Consolidated Fund Service (CFS) 408,600 395,574 381,934 371,162
Debt service 323,674 302,155 288,516 277,744
Amortization 188,867 134,200 134,200 131,700
CFS others 84,926 93,418 93,418 93,418
Recurrent excl CFS 1,391,164 1,686,408 1,807,720 1,916,800
Salaries and wages 464,061 551,159 628,205 727,077
Designated Items 18,243 207,882 213,969 203,759
Other charges 908,860 927,367 965,546 985,964
Payment of arrears - - - -
Contingency - - - -
DEVELOPMENT EXPENDITURE 807,440 1,246,256 1,154,717 1,020,583
Projects 807,440 1,246,256 1,154,717 1,020,583
Local 140,091 128,091 141,797 157,678
Foreign 667,349 1,118,165 1,012,920 862,905
Source: President‟s Office, Planning and Privatization and Ministry of Finance.
Table 19(a): Budget Framework 2003/04-2006/07 (in million TShs)
2003/04 2004/05 2005/06 2006/07
Budget Ceiling Projection Projection
TOTAL RESOURCES 24.9% 28.7% 26.1% 23.2%
Domestic revenue 13.3% 13.7% 13.8% 14.0%
Programme loans and grants 3.9% 3.6% 2.5% 1.0%
Project loans and grants 4.5% 8.7% 7.4% 5.7%
Health Basket Recurrent 0.7%
Education Basket Recurrent 1.2%
Recovery from NBC Bond 0.0%
HIPC relief (ADB, IMF, WB) 1.0% 0.7% 0.7% 0.6%
58
Non-bank borrowing 0.0% 1.0% 1.1% 0.02%
Bank borrowing 0.2%
Adjustment to cash 0.0%
Privatisation Funds 0.2% 0.1% 0.1% 0.1%
TOTAL EXPENDITURE 24.9% 28.7% 26.1% 23.2%
Recurrent Expenditure 17.2% 18.0% 17.1% 16.0%
Consolidated Fund Service (CFS) 3.9% 3.4% 3.0% 2.6%
Debt service 3.1% 2.6% 2.3% 1.9%
Amortization 1.8% 1.2% 1.0% 0.9%
CFS others 0.8% 0.8% 0.7% 0.7%
Recurrent excl CFS 13.3% 14.6% 14.1% 13.4%
Salaries and wages 4.4% 4.8% 4.9% 5.1%
Designated Items 0.2% 1.8% 1.7% 1.4%
Other charges 8.7% 8.0% 7.5% 6.9%
Payment of arrears - - - -
Contingency - - - -
DEVELOPMENT EXPENDITURE 7.7% 10.8% 9.0% 7.2%
Projects 7.7% 10.8% 9.0% 7.2%
Local 1.3% 1.1% 1.1% 1.1%
Foreign 6.4% 9.7% 7.9% 6.1%
6.3 Public Expenditure Management in the Medium Term
In the medium term, Government will continue to strengthen management and discipline in Government
expenditure in order to ensure sufficient accountability. The Government intends to amend the Public
Procurement Act and the associated regulations to enhance accountability by separating the regulatory
functions from the supervisory functions, and to strengthen capacity of the implementers. The
Government has improved regulations of the Public Finance Act of 2001 and will continue to strengthen
the application of the IFMS for preparation of the budget and to effect payments in order to increase
efficiency and transparent in the allocation of funds. In the next financial year, the Government will roll
out the IFMS to the Offices of the Regional Administrative Secretaries and the National Defence Forces.
59
VII. POVERTY MONITORING AND EVALUATION
This chapter reports for the first time the operationalization of the Poverty Monitoring Master Plan. The
report covers activities of four Technical Working Groups, namely, Census and Survey, Research and
Analysis, Routine Data System, and Dissemination, Sensitization and Advocacy. The report highlights
progress and achievements in implementing the PMMP during the period under review, drawing also on
activities carried out during the previous year.
7.1 Performance
Among the major activities performed include: Preparation of the Second PRS Progress Report
(2001/02), publishing of the Poverty and Human Development Report (PHDR 2002), dissemination of the
Household Budget Survey (HBS2000/01) and Integrated Labor Force Survey (ILFS 2002/01). A
Participatory Poverty Assessment (PPA) exercise was carried out throughout the country to gather views
from the grassroots level on efforts and challenges encountered in the fight against poverty. The PPA
focused on vulnerability. Dialogue between government, CSOs, external development partners and
private sector was carried out through consultative meetings.
The dissemination, sensitization and advocacy strategy focused on poverty reduction policies and related
issues, including findings from various studies and surveys. The major activities include: a simplified
version of PRSP Progress Report (2000/01) in English and Swahili, which were published and widely
disseminated to different stakeholders. To enhance understanding of the poverty monitoring master plan,
a user guide was prepared and disseminated. Efforts are also underway to establish a Monitoring Website
and Documentation Center within the Poverty Eradication Division. This will ease availability of
information generated through the poverty monitoring system and other sources to enhance evidence-
based decision making and implementation processes.
The Poverty Policy Week was held in September 2002 and October 2003 with the objective of sensitizing
people and advocating for change. This provided opportunity for all key stakeholders to reflect on a
number of issues including the contents of the PRS Progress Report and PHDR. The deliberations are
documented in the Poverty Policy Week Proceedings for 2002 and 2003, and will enrich the policy
review process and facilitate the design of more effective intervention measures so as to adequately
address the problem of poverty in the country.
A number of workshops were organized and conducted by the Routine Data System Technical working
group at national and zonal levels. The objectives of these workshops were to raise awareness among
sector ministries, regional secretariats, NGOs, local authorities, academia and other stakeholders on the
60
PMS and link it with the local Government Monitoring and Evaluation system. The workshops also
provided an opportunity for exchange of experiences in the field of data collection and use.
7.2 Operationalization of pooled fund mechanism for the PMS
Pooled Fund partners have made pledges and contributed to the PMS Pooled Fund. The amount of
money from Pooled Fund Partners deposited to the holding account in the Bank of Tanzania during
financial year 2002/03 was Tsh 408,390,000 deposited at the end of December 2002 by the Danish
Embassy. The use of the funds awaited the finalization of financial procedures for utilization of funds.
These were finalized in 2003.
The Memorandum of Understanding (MoU) between GOT and Development Partners concerning the
pooled fund for poverty monitoring was prepared and signed in March 2003. Also the TWGs and the
Secretariat have opened their respective Bank Special accounts to facilitate smooth flow of funds and
implementation of the planned activities.
7.3 Challenges encountered
Generally the performance of all four Technical Working Group was satisfactory although some activities
were not implemented according to plan due to irregular disbursement and shortage of funds.
Operationalization of the joint funding mechanism provides for smooth operations. However,
Government recognizes the need to make an open assessment of the weaknesses of the system at the
operational level.
61
Annexes: Policy Matrix for Poverty Reduction Strategy
A.I: Macroeconomic, Good Governance and Private Sector Development
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
Macroeconomic: Macroeconomic: Macroeconomic & Good governance::
Attain a real growth of 6.3% in 2004. GDP growth was at 6.2% in 2002, and about 5.5% in Consolidate macroeconomic stability through
Reduce inflation to about 4.0% by 2003. promoting broad-based economic growth
2004. strategies.
Increase revenue efforts to 13.2% of Good governance: Continue with implementation of public sector
GDP in 2004/05. The PCB was strengthened by increasing its budgetary reforms.
resources and decentralized from zones to district-level. Mobilize more revenue and increase resource
Good governance: There was a substantial increase in the number of allocation to identified pro-poverty reducing
Continue to promote good governance corruption cases lodged, from 33 in 2000 to 129 in 2002. activities.
in public service delivery through However, the number of convictions is low, recoding 6 in Sustenance of peace and security through
improvements in public finance 2000 and 12 in 2002, attributed to the long delay in combating crime.
management and accountability, processing cases before a conviction or acquittal is Create employment opportunities through
strengthening legal and regulatory obtained. increased public and private investments.
framework, poverty reduction National Integrity Fund to support the implementation of Continue with decentralization process.
initiatives, and fighting corruption. anti-corruption activities and plans developed by MDAs Strengthening judicial and justice system.
has been established. Strengthening financial management and control.
Private Sector: Continue fighting corruption.
Creation of friendly and conducive Private Sector:
business environment. Land bank draft report completed in 2003. Private Sector:
Labor policy completed. Finalization of amendments to the Land policy
Nuisance taxes removed. and establish the land bank.
Restructuring and privatization ongoing. Harmonize and rationalize the licensing process.
Implementation of BEST.
Provide stable electricity power, water,
telecommunication and transport systems.
62
A.II: Poverty Monitoring System
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
Provide the decision policy-making Preparation of the Second PRS Progress Report Continue with production of 2002 census
process with evidence-based policy (2001/02), publishing of the Poverty and Human reports/volumes
advice or information. Development Report (PHDR 2002), dissemination of the (a) Complete fieldwork of agricultural sample
Strengthen data collection and Household Budget Survey (HBS2000/01) and Integrated census – February
analysis on poverty trends. Labor Force Survey (ILFS 2002/01). (b) Complete fieldwork of HIV/AIDS Indicator
A Participatory Poverty Assessment (PPA) exercise was Survey – April
carried out and focused on vulnerability. (a) Initial planning of DHS
Efforts are also underway to establish a Monitoring (b) Field work – 2004/05
Website and Documentation Center within the Poverty Report preparations
Eradication Division. (a) Agricultural sample census
The Poverty Policy Week was held in September 2002 (b) HIV/AIDS Indicator Survey
and October 2003 with the objective to sensitize people RDS: To strengthen capacity on Routine Data
and advocate for change. System – collection at all levels
A number of workshops were organized and conducted To Harmonize Routine Data System collection
by the Routine Data System Technical Working Group at DSA: To disseminate PMS findings during the PPW
national and zonal levels. The objectives of these and other dissemination channels in
workshops were to raise awareness among sector collaboration with other TWGs
ministries, regional secretariats, NGOs, local authorities, R&A WG:
academia and other stakeholders on the PMS and link it Identify priority research areas
with the local Government Monitoring and Evaluation (i) Poverty mapping: depends on inpts from census
system. and survey
(ii) Impacts of user charges in health sector: access
of poor people to health services
Dissemination in collaboration with DSA
PHDR 2003 popular version
Evaluate PPA: to provide lessons for
improvement of future PPA
Identify research priority areas for the PHDR
2004 and PRS Review.
Prepare (PRS Technical Committee) the Second
MDG Report 2004 for Tanzania.
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A.III: Water
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
Provide adequate, clean and safe Rehabilitation and expansion of 41 rural water schemes, Rehabilitate and expand 794 water supply
water and sanitation services through 118 boreholes, and construction of 2 large dams and 3 schemes in rural areas by 2006.
rehabilitation and expansion of medium size dams is complete. Explore underground water in 700 areas to ease
existing rural water schemes and The new Chalinze water supply scheme is almost construction of new water schemes especially in
construction of new water projects complete. dry areas.
with targets to increase coverage from 37 district town water boards are in place. Ensure district town water boards are in place in
53% in 2003 to 60% in 2006. 1431 underground water areas explored and 968 all district headquarters by 2006.
boreholes drilled. Construct Mugumu dam in Serengeti district.
National water Policy 2002 launched in March 2003 Replicate rural water supply and sanitation
project to 50 districts by 2005.
Rehabilitation and expansion of urban The study on pricing policy is in place, service package Restructure urban water supply pricing by the
water supply to increase service levels for vulnerable groups identified and operational. year 2004
with targets from 73% in 2003 to 78% Rehabilitation and expansion of Water supply and Complete phase II of urban water supply by 2005.
in 2006. Sewerage Systems in Seven Municipalities and eight Conduct studies, design and implementation of
towns is complete. projects for new water sources in all urban centers
Phase II of expansion of urban water supply is 80% Ensure customers are connected with water
complete meters by 2005.
10,462 water meters installed. 50% of customers now
installed with meters,
DAWASA privatization is completed. Private operator
operating since August 2003.
To strengthen water resource 1588 water samples were tested for standard amount of Increase activities for water resource
environmental and pollution control chemicals, and 1839 water samples were tested for environmental and pollution control network in
network with targets to reduce turbidity and bacteriological parameters, advisory order to reduce pollution levels from 20% to 10%
pollution levels from 20% in 2003 to measures were taken. by 2004.
10% in 2006 78 industries were inspected to control industrial
effluents.
To improve Management of Water Five water basin offices in five Basins are in place. Put in place basin offices in the remaining four
Resources (RBM), with targets to have 176 hydrometric stations were rehabilitated, 47 data basins by 2005.
in place water quantity surveillance and lodgers installed and one isotopic hydrometric station Rehabilitate the existing hydrometric networks
management mechanism in all water was built at Makutopora Sub-basin. and complete the network in all basins by 2005.
basins by the year 2006
64
A. IV: Health
OBJECTIVE PROGRESS TO DATE PLANNED ACTION
Strengthen immunization All 113 Local Authorities have developed their comprehensive The government will emphasize on the „Essential
services, malaria control District health plans, which target to provide quality of health Health Package‟, to maximize the impact of
activities, nutritional services, inline with PRSP goals. limited resources and to ensure delivery of
programs, reduce maternal 31 districts which were in Phase III of LGRs are now brought on essential health at all levels to meet the needs of
and child mortality rates board by January 2003 to accelerate poverty reduction initiative in the poor and vulnerable groups.
and reduce prevalence of the health sector program. Operationalize the Health Sector Strategic Plan
HIV/AIDS. The Health Sector Strategic Plan 2003-2008 was developed as a 2003-2008 at all levels.
Improving environmental continuation of the effort to implement Health Sector Reforms. A Financing Task Force has been established with
sanitation and safe water. The Health Sector Public Expenditure Review that was undertaken an aim of negotiation with MoF and donors to
Promoting curative in January 2001 has revealed that per capita public health spending increase the resources envelope
services at all levels. has risen from US$3.4 to US$5.50 between 1997/98 to 1999/2000, A new resource allocation formula for the local
the PER 2002 indicates 6,361 TSh per capita. government health grant is being developed to
The sectoral allocation to health is only increasing very slowly, from ensure equity in resources allocation to LG. This
7.5% in FY00 to an estimated 8.7% in FY03. formula takes into account population, poverty,
In the PER 2003 the spending on preventive health has increased mileage traveled by medical vehicles and burden
from 41.4% in FY01 to 47.8% in FY02. of disease.
A plan of Action of reforming the tertiary and secondary health A strategy for rehabilitation of health services is
services to re-orient these services to support the level I health care being developed and implementation is expected
is well elaborated, and activities towards hospital reforms started to start very soon.
with reforming MMC to MNH. Initiate district hospital reforms and thereby
The legal framework of restructuring MMC is in place, the MNH improve quality of care and strengthened the
board and management has been established. district referral system.
Private Sector Development and participation in the service The MoH has established a co-ordination desk for
provision is promoted through the Health Sector Reform proposals this activity, which include registration of the
1994. This is further elaborated in the HSSP 2003-2008. private sector facilities. The MoH, CSSC and
47 new councils were trained in IMCI, community strategy for faith groups are working out modalities of
IMCI was developed, Kiswahili versions of IMCI modules are now participation from policy to implementation over
available and IMCI indicators have been developed. and above the current contractual arrangements
The reproductive and child health unit reports a MMR for 2002 to under DDH, and grants to the NGO‟s (VA)
be 228.3/100.000 hospitals.
There is continuing increase in the utilization of MCH services Accreditation of more private facilities is being
which include reproductive health and family planning. undertaken by NHIF and is expected to strengthen
Control of common disease conditions are being addressed under service delivery.
different programs e.g. Malaria Control, onchoceriasis control, New figures for IMR and U5MR are expected to
schistosomiasis control EPI, TB and Leprosy Control. Furthermore come from the NBS by the beginning of 2004
the EAC will address this as an EAC issue to contain these diseases. Provide Maternal and Child Health Services,
promote adequate nutrition and improve control of
communicable and preventable diseases.
65
A.V: Gender
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
Enhance capacity for Gender focal persons have been approved and established in the major PRS ---VPO, MCDGC and other stakeholders to
gender mainstreaming priority sectors and their training needs defined; work together to ensure that gender issues and
in the PRS/ MTEF/ Monitoring gender concerns are taken on board in the PRS Review
PER and in sector (i) Considerable gender analysis is available in two major poverty-monitoring planned for 2003/2004. VPO to coordinate
plans, strategies and reports, PHDR 2002, 2003. this process
programs (ii) Computerized system for monitoring progress in gender equity has been ---Sectors and PORALG will carry out capacity
initiated within MCDGC and will be completed in April 2004. building for gender focal points for
(iii) A detailed analysis of the HBS data on Female Headed Households has mainstreaming gender within the sectors and for
been completed improvement in collection and analysis of
Legal reform: A National Plan of Action for Combating Violence Against gender disaggregated data
Women has been developed and resources are being sought to make it ---MCDGC /VPO will jointly complete the
operational gender database and monitoring system and
Capacity Building: MCDGC has enhanced its capacity to promote gender provide guidelines for sectors and PORALG to
mainstreaming. collect gender disaggregated data.
Mainstreaming gender in the PRS: VPO and MCDGC held a consultative ---MCDGC/VPO to work out a system to obtain
meeting to mainstream gender in the Planned PRS Review. An Action Plan information from sectors, NGOs and private
has been developed to see how the process can be engendered and made more sector on activities related to promoting gender
participatory. equity and mainstreaming
Women’s economic empowerment: women‟s participation in trade fairs was ---MOLYDS/MCDGC will consolidate the
facilitated achievements and replicate them so that 1,000
Elimination of discrimination in employment and occupation: 731 women more women can participate and benefit from
workers have been assisted to form economic groups and their capacities development interventions
enhanced with easy access to productive resources including flexible loans.
A.VI: Education
OBJECTIVE PROGRESS TO – DATE PLANNED ACTIONS
Raise gross and net enrolment and Gross enrolment ratio is at 105.3% and Net Allocate more resources to the sector.
enhance the quality of basic enrolment ratio at 88.5% in 2003. Both ratios have Construction 14,203 classrooms, 8,197 teacher houses, pit
education. increased from 100.4% and 80.7% respectively in latrines and rain water-harvesting tanks.
Improving access and equity to 2002. Construction of 13,396 classrooms is expected Enrolment of 1,640,969-school age going children, recruit
education at all levels. to be completed by November 2003. 10,563 new teachers and enroll 11,290 teacher trainees.
Increasing the number and quality of 98 districts have been school mapped and by the end Ensure pupil book ratio of 1:3 for teaching and learning
teaching staff. of November, 2003 the number of micro planned books so as to attain the ratio of 1:1 by 2006.
Strengthening and improving the shall add up to 69 districts. Inspect 19,080 Education units to ensure quality Education.
management capacity at all levels of Training of Trainers of 763 facilitators to upgrade Improving water supply and sanitation.
education. 50,000 grades "C/B" teachers to grade "A" was Conducting counseling activities on radio and TV on
Controlling the spread of HIV/AIDS conducted. HIV/AIDS.
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Continue to strengthen community capacities in managing
primary schools.
Maintain the provision of capitation grant of US$ 10 per
pupil per year.
Upgrade 50,000 grades "C/B" teachers to grade "A".
Implement National Adult and Non formal Education Plan.
A.VII: Roads
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
Improve rural and district and cross Somanga-Masaninga including construction of The government will continue to release the allocated 1.84
border roads network to enhance Matandu bridge, Nangurukuru-Mbwemkulu, billion monthly to improve transport link to the
access to farm and agriculture Mbwemkulu-Mingoyo, Dodoma-Manyoni and northwestern and southern regions of the country.
markets. Manyoni-Singida road sections: Advocate the use of Labor Based Technology in
Capacity-building in the LGAs to Consultants for the supervision of the works rehabilitation, routine, periodic and sport improvement for
enable them manage road networks procured. the whole network.
effectively. 34% increase in budget allocation for FY 2002/03. Develop and prepare a Program similar to 10 years Road
Implementation of the EAC-Sub Routine maintenance, emergency repair and spot Sector Development Program for the District, Urban and
regional priority road network improvement carried out in all 20 regions. Feeder Roads.
program. Rehabilitation of regional roads in progress, 525 Implementation of the EAC Sub-regional priority road
Maintenance of trunk, regional, km of regional roads are currently under network program.
urban, district and feeder roads. rehabilitation. National rollout and dissemination of District Roads
Increasing budget allocation to Periodic maintenance of 10,120 kms of the rural Management System (DROMAS) to District Councils.
financing rehabilitation and roads network has been done National rollout and dissemination of Urban Roads
maintenance of using of labor- Management System (RMMS) to 21 Town Councils.
intensive technology. National rollout and dissemination of VTTP Program
package tools to 113 districts (including training, baseline
access study, capacity building, guidance notes etc.
Undertake maintenance of trunk, regional, district and
feeder roads network, and carry out emergency repair and
spot improvement in all district roads
Improve the capacity of district engineers to manage
execution of road maintenance works at district level.
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A.VIII: Judiciary and Justice
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
To enhance timely and accessible Increased appointment and recruitment in the Introducing individual Calendar system of managing cases in
justice for all, in line with basic judiciary. the High Court and Subordinate Courts;
human rights focusing on Enhanced training of magistrates and judges. Strengthening the Institute of Judicial Administration;
personal safety, access to justice, Introduction of the alternative dispute Strengthening Law Reform Commission of Tanzania through
overall efficiency, fairness, and resolution. the provision of adequate working tools and materials and
transparency of the administrative Establishment and operationalization of the training;
system. Human Rights and Good Governance Improving prosecution capacity;
Commission. Initiating measures aimed at reducing crowding of prisons;
Enhanced budgetary allocation to the Judiciary, Combating crime and insecurity;
Attorney General's Chambers and Law Reform Establishing and operationalization of Judicial Ethics
Commission. Committee;
Continue with rehabilitation of primary courts buildings;
Extension of Commercial Court Sub-Registries in Arusha and
Mwanza.
A. IX: Agriculture
OBJECTIVE PROGRESS TODATE PLANNED ACTION
Create an enabling and Agricultural Sector Development Strategy Finalizing detailed formulation of the ASDP sub-program (ASDP)
conducive environment Developed in 2001. phase II).
profitability of the sector and Agriculture Sector Development Program Continue with the analysis of Agriculture Survey 2003/2004.
ensure food security. Framework and process document completed. To develop monitoring and evaluation system for ASDP within the
Increase production and the Restrictions on internal trade on agriculture PRS monitoring framework.
processing of agricultural products removed Development of small-scale irrigation schemes including water
and livestock outputs. District Agricultural Development Plans harvesting.
Strengthen support services (DADPs) prepared. To strengthen extension services and strategic research by
for agricultural and livestock Local government taxes and levies institutionalizing participatory methodologies and district level.
growth (research, extension harmonized. To strengthen control of crops migratory pest and diseases.
and technical services). Private Agribusiness Sector (PASS) Review of legal and institutional framework for participation of
Support commercialization intensified private sector in agricultural development.
of agriculture. Food Security Policy Formulated. To promote agricultural inputs credit systems through support of
Agriculture Survey on going. AGITF.
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Strengthen Veterinary Investigation Centers (VICs) to carry out
effective disease surveillance and early warning system, analyze,
process animal disease data.
Strengthen livestock products, inputs and regulatory services in order
to achieve quality assurance.
Strengthen rangeland management development in 50 local authorities
and provide water for livestock in drought prone regions.
Control and arrest the spread of trans-boundary diseases such as
Contagious Bovine Pleuroneumonia (CBPP), African Swine Fever
(ASF), New castle disease (ND) etc in country.
Capacity building Cooperative society through Export Credit
Guarantee Scheme (ECGS)
Promotion and Establishment of Cooperative Banks.
Review of 1991 Cooperative Act (Code of Conduct for Cooperative
Management.
Formulation and operationalization of enabling Agricultural Marketing
Policy by year 2004‟
Monitoring and evaluation of Marketing projects (AMSDP)
Establishment of marketing Development center by June, 2004
To expand and promote market potentials of non-traditional crops (e.g.
cassava and millet).
A.X: HIV/AIDS
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
To improve services MDAs are developing plans for mainstreaming HIV/AIDS intervention into routine activities MDAs to identify
and reduce HIV/AIDS including workplace interventions and MTEF HIV/AIDS activities
infection. Many private enterprises have workplace HIV/AIDS interventions including provision of anti appropriate to the
Combating HIV/AIDS retroviral treatment. targets.
in general and To ensure that communities at the grassroots have sustained HIV/AIDS interventions, LGAs Providing costing for
preventing the spread supported in developing comprehensive HIV/AIDS programs that involve all stakeholders. identified activities
of HIV/AIDS Guidelines for the establishment of District AIDS Committees have been disseminated to all LGAs to by MDAs.
infection' facilitate community mobilization and involvement in the fight against HIV/AIDS. Show the linkages
Care and treatment of Modules for training members of the District AIDS Committees and technical functionaries have been between the
PLWHA developed and training started in November 2003. activities, objectives
Support to HIV/AIDS Efforts to mainstream HIV/AIDS in the planning/budgeting process have been initiated and will be and priority areas.
affected victims. applied in the fiscal year 2004/05. Medium Term Expenditure Review (MTEF) for 2003/04 – Identify and quantify
2005/06 for TACAIDS has been developed and TACAIDS now operates own vote. output by MDAs.
National monitoring and evaluation framework for the national response has been developed and core
team of trainers trained. A protocol for Tanzania HIV Indicator Survey (THIS) has been developed.
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A.XI: Employment
OBJECTIVE PROGRESS TO DATE PLANNED ACTIONS
Enhanced productivity Finalization of policies: Have all policies in place and complete and carry
and competitiveness, Two policies are in place i.e. the National Aging Policy and the out policy implementation strategies for these
elimination of child National Social Security. policies.
labor and increased Two policies are at the stage of being submitted to IMTC i.e. the Facilitate formation of the Youth representative
vulnerability of credit National Employment and the National Disability. bodies from Village to National level, having in
facilities for micro One policy – National Youth Development under revision is ready for place National Youth Council as an Apex body.
enterprises. submission to Cabinet Secretariat. The strategies to combat child labor and its worst
Reduce prevalence of Child Labor Policy has been replaced by strategies to combat child forms finalized and linked to the national Child
poverty in urban areas labor and its worst forms. The Child labor survey report was Development Policy.
completed and disseminated in 2003. The findings contributed to draft
formulation of child labor strategies.
Promoting of more and better jobs for women under conditions that Provide loans to 400 more women workers
will reduce child labor: Organize 1,000 more women workers into
848 poor women workers have been assisted to organize into economic groups and provide them with training
economic groups and provided with new skills including mushroom Remove 1,000 (50% girls) younger and older
farming, poultry keeping, handcraft production, vegetable growing children from child labor and provide them with
etc. alternatives for primary education and formal and
541 women workers have registered with Akiba Commercial Bank non-formal vocational training
and are receiving loans Assist 400 (50% girls) youth withdrawn from
1026(475 girls and 551 boys) younger and older children have been child labor and provided with vocational skills to
withdrawn from child labor and provided with alternatives for basic set up youth economic groups for income
education and vocational training generation.
14 daycare attendants have been trained, 15 daycare centers renovated Train 10 more daycare attendants and
and 1,258 (51% girls) smaller children enrolled in the daycare centers rehabilitate/create 10 daycare centers in project
and provided with uniforms, learning and playing materials and a locations.
feeding program.
Creation of employment in municipal services delivery To up-scale the activity in at least six
2,000 jobs were created in solid waste management services in Dar es municipalities
Salaam on public-private-partnership approaches
Promote employment for people with disabilities (pwds) To give seed money and working tools to more
50 people with disabilities received seed money for income generating people with disabilities.
activities. To avail more vacancies to people with
12 people with disabilities received working tools. disabilities in vocational training institutions to
155 people with disabilities were admitted in vocational training more people with disabilities.
institutions under various skills
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Performance of Labor Exchange Center: Capacity building for center (work facilities,
7069 job seekers registered. 2748 referred to employers for website and training). Extension of LEC services
employment and 182 were employed. 3430 job openings registered. to 5 Zonal centers other areas.
444 were provided with job search information and advice. 144 Implementation of a program of attaching job
received vocational guidance and counseling services. seekers to companies to gain experience and
skills.
Exploring ways of looking for job opportunities
outside the country.
Review of outdated industrial and occupational
dictionary currently being used by the center.
Demand driven skills training Program continued to be implemented 20 more districts to benefit from the program. Carry
in 20 other districts. out a SWOT analysis of the program performance,
outcome and impact on poverty reduction at
community levels
The key employment study reports i.e. the Investment for Poverty Translate the key reports to user-friendly versions
Reducing Employment (IPRE) 2000,the strategies for Employment and and disseminate the report findings to wider range
poverty reduction Country Action program, and the ILFS2000/01 were of stakeholders at all levels for further reference.
officially launched Mainstreaming CAP proposals into other priority
During the employment stakeholders meeting in April 2003. sectors for employment creation.
Time-Bound Program is in operation – 5,000 children have been Complete baseline survey on worst forms of child
withdrawn from child labor. labor in 11 districts.
Community awareness raising and mobilization
for elimination of worst forms of child labor in 11
districts surveyed.
Labor Law Reform – Submission of the Report on Labor Law Reform
by the Labor Law Reform Task Force to MOLYDS, finalization of
two Bills on: Employment and Labor Relations, and Labor
Institutions for presentation to the National Assembly for first reading
in November 2003.
A.XII: Environment
Objective Progress to-Date Planned Actions
Integrating Cabinet approved a new institutional framework for In general implementation of program to integrate
environment into the environmental management in December 2002. environment into PRS process.
PRS process to Environment framework law - Following approval of Poverty and environment linkages – continue to document on
support sustained the institutional set up the VPO have led on the development poverty and environment linkages and commission studies as
economic growth of a single environmental framework law with a first draft appropriate.
and development prepared for consultation in December 2003. Poverty and environment indicators – Complete study on
Launch of Program to Integrate Environment into poverty-environment indicators, and use the results of this to review
the PRS process. Outputs focus on knowledge on poverty- and amend poverty-environment indicators to strengthen the national
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Objective Progress to-Date Planned Actions
environment linkages, use of environment data in poverty poverty monitoring system.
monitoring system, and capacity building of Government and PRS review – a central element of the coming years activities
non-government stakeholders. will be attention to environment as one of priority cross cutting issues
Establishment of Environment Working Group - a in the review of PRS.
cross-sector environment-working group (EWG) has been Cross-cutting issues and mainstreaming – develop links with
established to promote the integration of the environment into groups mainstreaming other cross-cutting issues including gender, to
the GOT policies and plans to help ensure the sustainable use help ensure effective mainstreaming of these issues and build
of Tanzania‟s environment and natural resources for poverty knowledge on useful tools for mainstreaming.
reduction. Local government – develop with PORALG pilot activities on
PER Environment – the first public expenditure mainstreaming environment at the local government level (links with
review (PER) of the environment has been initiated and is the implementation of the new institutional structure for environment
expected to produce inputs into MTEF and guidelines to management – see below).
mainstream environment into their sector PERs. Civil Society Organisations – focus work with environment
Utilization of poverty-environment data for use in and conservation non-government organisations to increase their
PRS process - Preliminary poverty-environment indicators awareness on poverty and environment issues, and their involvement in
were included in the revised indicator list for the PMS for use the PRS process.
by PRBS/PRSC. TOR for detailed study on poverty- Private sector – strengthen engagement with private on
environment indicators developed and identification of poverty and environment issues
consultants to undertake study is underway. Environmental framework law – finalise draft of law for
Integration of environmental management in the submission to Parliament following Cabinet approval, and subsequent
sector programs. Approval of environment units for sectors, to its passing commence development of relevant environment
and development of SEA (see below). regulations and guidelines for: (a) integrating EA into sector and
Agricultural survey – VPO with NBS worked on the district planning processes; (b) Economic instruments; (c)
design and questionnaire of the agricultural survey to ensure it environmental standards for monitoring and compliance.
included relevant questions on environment sustainability and Environment working group – strengthen membership of the
livelihood issues. Environment Working Group, and broaden its present work to include
Strategic environment assessment – Study completed inputs into PRS review and implementation of PRS and engagement
on the use of SEA and poverty reduction. with other sector working groups.
PER Environment – complete 2003/04 PER study and
develop sector guidelines to mainstream environment, and develop
TOR and commission PER study 2004/05 to build on first PER for
environment.
Tanzania Social Economic Database (TSED) – work with
NBS on using existing data collection and analysis of agriculture
survey to complete environment module of TSED.
Capacity building – implementation of capacity building
action plans under the program to integrate environment into the PRS.
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